Asymmetry Investment
Asymmetry Investment is an asymmetric investment or asymmetric investment strategy with the objective of an asymmetric trade or asymmetric payoff.
An asymmetric investment is the probability or outcome of a trade has more profit than loss or risk taken to achieve the profit.
Or, the upside potential is greater than the downside loss. Asymmetry of a trade may be when the downside is limited, but the upside is unlimited.
Asymmetric return profile is one that has higher and large profits than the losses, more upside than downside.
For information about asymmetric investing visit ASYMMETRY®
Asymmetry and an asymmetric payoff is seen in the graph above.
Asymmetry is desired over symmetry: (symmetry is when your risk and reward is balanced, so the outcome for profit is the same as the outcome for loss.
Asymmetry is when the risk and reward is skewed so the potential for reward is greater than the risk taken.
For more information, see:
Asymmetric Return Distribution
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