All termsProbability, Pricing and Expected ValueWorth knowing
Minimum Edge
Minimum edge is the smallest difference between a trader's estimated fair probability and the market price that the trader requires before considering a position.
Why it matters to you
Tiny apparent mispricings may disappear once you account for: uncertainty, fees, spread, slippage, and errors in your probability estimate. Requiring a minimum edge can prevent traders from treating every small disagreement with the market as an opportunity.
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