# Asymmetric Payoff

**Asymmetric Payoff is more profit than loss.**

Asymmetry of a trade (asymmetric payoff) is when the downside is limited, but the upside is unlimited.

What is an asymmetric payoff or asymmetric investing?

An asymmetric payoff may refer to the * probability* or

*or*

**potential***of a trade or the*

**expected outcome****of the trade of investment.**

*actual**outcome***Asymmetric payoff **isthe upside potential is greater than the downside loss.

**Asymmetric payoff **isthe upside potential is greater than the downside ** risked**. For example, you risked $1, but earned $2. Or, you expect to earn $2 when you risked $1.

**Asymmetric payoff **isthe upside probability (a mathematical calculation) is greater than the downside loss or risk.

**Asymmetric payoff **is the outcome of a trade has more profit than loss .

As you can see in the graph below, asymmetry is preferred over symmetry: (symmetry is when your risk and reward is balanced, so the outcome for profit is the same as the outcome for loss.

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