3 ms·
It's just different ways of describing risk/reward. Unlike a casino you can take either side of the contract.
by jonknee 8y ago
It's just different ways of describing risk/reward. Unlike a casino you can take either side of the contract.
- ryandrake 8y agoIt’s more like poker in the casino. There are at least three sides: player A (you), player B (your counterparty), and the casino (Wall St.). It’s zero sum between A and B, but the casino always takes their cut. +EV for the casino means -EV for the players on average
- function_seven 8y agoYeah, I always visualize large ask/bid spreads as the "rake".