/biz/ - Business & Finance

>>8573311
>>8573326
Wait what ... that means that leverage is automatically negatively biased, right? Assume $100 in, 1% up, 1% down, with 1x, 5x or 10x leverages:

100*(1+0.01*1)*(1-0.01*1) = 99.99
100*(1+0.01*5)*(1-0.01*5) = 99.75
100*(1+0.01*10)*(1-0.01*10) = 99

So the higher the leverage the higher the negative bias ... who would use leverage at all, if you are automatically biased to lose money?