How does "hedging" work in investing?
How does "hedging" work in investing?
Someone turned 80k into like 1.2 million betting on Tesla calls or something and hedged with a Kamala win bet it was like 50k tesla/30k Kamala and they turned it into 1.2 million via Tesla somehow
Is it like
- bet 1/2 on unlikely thing
- bet 1/2 on likely thing
- rely on gains on either side averaging out to at least ++
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I've never tried it, but I think it's when you invest and your funds are doing well, but you never actually cash out.
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