4 ms·
> One loss sets you back 10-20 wins. didn't look at the numbers, but this one sentence reminds me of selling options for 'passive income' (don't do that)
by baq 7mo ago
> One loss sets you back 10-20 wins.
didn't look at the numbers, but this one sentence reminds me of selling options for 'passive income' (don't do that)
- traderj0e 7mo agoI drew the same analogy. You put up $0.95, a YES gambler only puts $0.05 (ignoring spread); you're providing "insurance" in case of a YES. In theory, even if the market prices reflected the true probability of the event happening, the more expensive side should be netting some "insurance premium" on average, right? Not sure, and idk how to observe if that's happening. Polymarket is also holding onto the money in the meantime. Idk what they do with it, but it's not like some other platforms where they at least work with a bank to earn you some tiny interest on it.
- nsvd2 7mo agoThey probably make interest off it themselves, so to give you any interest would cut into their margins.
- doctorpangloss 7mo agoQuintessential hustler logic: inability to compare the gains from wins to inevitable losses.
- deleted 7mo ago[deleted]
- pjc50 7mo agoLTCM doing that was an early example of "too big to fail". In the late 90s.