Let's say the bankroll hypothetically is 100 BTC in size for easier calculations.
If you invested 0.04 @ 0.25, that'd be a total investment of 0.01, about 0.01% of the bankroll. If the site were to profit 10 BTC, you'd earn 0.001, if it lost 10 BTC, you'd lose 0.001.
If you invested 0.04 @ 5.00, that'd be a total investment of 0.20, about 0.20% of the bankroll. If the site were to profit 10 BTC, you'd earn 0.020, if it lost 10 BTC, you'd lose 0.020.
Basically, it increases how large your investment share is, by multiplying the size of it. Which ends up multiplying profit/loss.
Thanks for the answer, but I still don't get something...
Why should I invest 0.04 @ 0.25 instead of 0.01 @ 1.00 ?
And since I want to invest (then deposit) 0.04 BTC, isn't better for me to put it @ 5.00?
I don't understand why my investment of 0.04 would be worth a total of 0.20, are you giving me 0.16BTC for free?
Because your risking it at a margin. Margins are equal to the amount of risk you wish to talk with your investment.
The higher the margin the more the investors are willing to risk to make the site have competitive rewards.
It also mean your trying to get 5x your investment so the 0.2 reward is what your set to get with the margin assuming profits are up.
