Posted in Finance, Accounting and Economics Terms, Total Reads: 256
Definition: Casino Finance
It is a term used to describe an extremely risky investment strategy. It is often used to refer to large bets on extremely risky investments. However these investments have the potential to give very high rewards as well.
These investors are risk seekers as they are willing to ‘lose it all’ in order to earn large rewards. They are opposite of risk averse investors who settle for small rewards.
Casino finance refers to gambling or casinos, where the player has little or no control over the outcome of their bets. The term ‘Casino Finance’ usually refers to high money bets in the market, either involving highly risky investments and/or highly leveraged accounts. Most investors prefer to take a more conservative approach, whereas some investors are comfortable to undertake large amount of risk, to give themselves a chance to secure large returns.