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Trading glossary · advanced

edge

A small advantage that makes a way of trading win a bit more than it loses over many, many trades.

The fuller meaning

A repeatable statistical advantage: positive expectancy after costs. Real edges are small and bumpy, show only over many trades and must survive costs and out-of-sample testing; losing streaks happen even with an edge, which is why risk per trade stays small.

edge.

Related words

at the money · backtest · backwardation · basis · call option · contango · data snooping · delta · entry trigger · exercise