Icelandic-Palme Gambit

The Icelandic-Palme Gambit, often shortened to the Icelandic Gambit, arises when White tries to hold the extra pawn of the Modern Variation with 3. c4 and Black, instead of regaining it, offers a second one with 3...e6. The usual reply by far is 4. dxe6, and after 4...Bxe6 Black has two minor pieces out and has removed the d5 pawn that covered c6, so ...Nc6 follows easily. In return for the pawn, Black relies on the development lead and the open center to build an initiative. White may instead decline with 4. d4, when 4...exd5 gives the pawn back and leads to level play, or develop with 4. Nc3.

Engines consider White slightly better, but in online games Black scores well, a result consistent with the practical difficulty of defending against quick piece play. The gambit was seen at the 1970 British Championship. Its name is credited to Icelandic masters and to Rudolf Palme. The Icelandic grandmaster Throstur Thorhallsson used it in several events during the 1980s, including the 1986 Reykjavik Open.