Convexity
Выпуклость · Convex payoff · Выпуклая позиция
A position is convex when small increases in input produce disproportionate gains, while losses are bounded.
Convexity is the mathematical shape of antifragile bets. A long call option is convex. A barbell career is convex. A modest savings habit with a side-of-the-side speculative bet is convex. The key is not to look at the average; look at the curve.
Convexity is what lets you benefit from volatility. If your position curve is concave (huge downside, small upside), volatility hurts you. If it's convex, volatility is gift-wrapped opportunity.
An author publishing one polished book vs an author publishing many short essays. The essay portfolio is convex: each one has limited cost, occasional one goes viral.
- 1Sketch the payoff curve before committing. Concave shapes need shrinking. Convex shapes need scaling.
This part of the knowledge base is inspired by the book. Go to the Ukrainian edition to explore the concept in depth.
- · Антихрупкость - convexity