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Meaning of martingale

Source language: EnglishDictionary language: English

martingale

noun

Definitions

  1. A piece of harness used on a horse to keep it from raising its head above a desired point.

  2. A spar, or piece of rigging that strengthens the bowsprit.

  3. A stochastic process for which the conditional expectation of future values given the sequence of all prior values is equal to the current value.

    Example: If a gambler plays a fair game repeatedly, his payoff over time is a martingale.

  4. A gambling strategy in which one doubles the stake after each loss.

verb

Definitions

  1. To employ the martingale strategy in gambling.