3 ms·

Leverage by its definition is scary. As you said increased risk/reward... $X,XXX,XXX - 50% chance of 1.2x, 50% chance of 0.8x - not so scary $X,XXX,XXX - 1%

Leverage by its definition is scary. As you said increased risk/reward... $X,XXX,XXX - 50% chance of 1.2x, 50% chance of 0.8x - not so scary $X,XXX,XXX - 1% chance of 50x, 99% chance of $0 - scary Its only not scary if you have an infinite amount of money and infinite number of rolls of the dice.

anthonyb 14y ago
Your second bet should be greater than 100x for it to be worthwhile. Still scary, but not for the reasons that you were thinking of.