Counterparty Concentration Is the Risk You Forget
Diversifying assets while holding everything at one venue is not diversification. It is a single point of failure with variety inside it.
Diversifying assets while holding everything at one venue is not diversification. It is a single point of failure with variety inside it.
One per cent risk on a forex pair and one per cent on a small-cap token are not the same bet. Volatility scaling fixes the comparison.