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When a $1bn gamble goes wrong: A lesson in risk management

Explanation

RDR2 gamblers were left reeling when they lost $1 billion to an investor who was in over his head.RDR2s are designed to protect your investment in the event of a sudden loss.

The idea is that a trader will bet on a specific stock or commodity and the risk is so great that he will not lose it.

When it came to the $1.2bn gamble, a single trader bet that the price of gold would fall, which he expected to happen.

He bet $1,000 on the price falling by $1 per ounce.

The price dropped $1 from his original prediction and he lost the bet.

Investors are not surprised by such an event because the odds are so low that they will lose the bet in the first place.

Rdr2s work by betting against the market and if the market goes down, you are stuck with the loss.

It is like betting against yourself, which makes it more likely that the bet will go wrong.

This is why a large number of traders lose money on a single bet.

A single bet of $1 million can easily be turned into a loss of $100 million, according to one trader.

There is no way to guarantee that the money you lost on the Rdr2 gamble will be returned to you.

The investor could have taken the money and spent it on something else.

Instead, the trader had to bet against the value of gold, which is a riskier investment than gold.

A few months later, the investor came back and bought the RDR1 from the trader.

He had bet $100 on the gold price dropping by $100 per ounce, but it has gone up by over $1 on his prediction.

The investor could not have taken that money, because he has now lost the money.

The trader has lost $100.

The gamble was a big win for the investor.

He made $1million and is happy with his decision.

Investor lost $10M in Rdr1 gamblesSource: ABC News articleRDR1 gambler loses $1B to RDR 2 gambler, but only $2M in winSource: Independent

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