3 ms·
That was coined for investment capital that comes with a cost. E.g. (in its simplest) borrowing money to trade with, and then having to make regular payments to
by ethbro 7y ago
That was coined for investment capital that comes with a cost. E.g. (in its simplest) borrowing money to trade with, and then having to make regular payments to maintain your positions.
Assuming you have no pressing needs for your invested capital (e.g. most retail investors), the market cannot actually stay irrational longer than you can remain solvent.
- isignal 7y agoThis is true for typical long positions but not for time based options. Some retail investors do buy those too.