【summary】
Terrasen is the portion of money collected from gambling and public competitions that is deducted by the management. It is a term used in horse racing, bicycle racing, boat racing, auto racing, etc., and is a concept similar to "commission" in the investment world. If you understand Terrasen, you will understand why it is difficult for many people to continue winning over the long term.
Conclusion
What is Terrasen?
Fees and expenses deducted by the operator from the money bet by participants
It means.
This means that not all participants will receive their bet back.
Etymology of Terrasen
It is often written in the kanji ``Terasen,'' and its origin is said to be the share received by the temple or treasurer who provided the place in gambling in the past.
At present,
- Horse racing
- Keirin
- Boat race
- Auto racing
- Some gambling
etc. It is widely used.
How Terrasen works
Let's consider a simple example.
Suppose 100 people bet 1,000 yen each.
The money collected is
100人 × 1,000円 = 10万円is.
If Terrasen is 20%,
10万円 × 20％ = 2万円will be the management's share.
The remaining 80,000 yen will be distributed to the winners.
In other words, looking at all participants,
20,000 yen has disappeared from the market from the beginning
condition.
Why is there Terasen?
It costs money to operate.
for example,
- Facility management
- Labor costs
- System management
- Advertising
- Prizes and prizes
And so on.
Terasen is collected to cover these expenses.
Difference from investment
What beginner investors need to understand is:
The structure of expected value is different between gambling and investing
That's the point.
Gambling
参加者のお金
↓
テラ銭控除
↓
残りを分配This will be negative for all participants.
Investment
企業成長
↓
利益増加
↓
配当・株価上昇Economic growth can make the overall market larger.
Terasen and expected value
What is expected value?
Average profit and loss over the long term
is.
For example, if Terasen is 20%,
The theoretical expected value of all participants is
100円賭ける
↓
平均80円戻るIt will be.
Of course, some people win on an individual level.
However, it is negative for all participants.
There is a similar idea in investment.
In fact, there is ``substantial tera-sen'' in investment as well.
That is
- Trading fee *Trust fee *Tax
- Spread
is.
For example, investment trusts incur annual costs.
With compound interest, this small cost can make a big difference over the long term.
Points that beginners tend to misunderstand
Terrasen is not fraudulent
This is a necessary mechanism to maintain operations.
Just because there's a winner doesn't mean you can win overall.
Some people win, while others lose.
In total, the amount will be negative by Terasen.
Cost is also important for investment
When it comes to investing, attention is focused only on returns, but in reality,
- Fee *Tax
- Maintenance cost
It is also important to suppress
Framework for investment beginners
利益
↓
コスト控除
↓
手取り利益Whether investing or gambling,
What ultimately matters is
“How much will remain?”
is.
summary
Terra coin is the portion that the operator deducts from the bet amount.
There are three important points.
- Terrasen is similar to gambling fees.
- All participants are negative from the beginning
- Similar costs exist in investing in the form of fees and taxes.
Beginners in investing can gain an advantage in long-term asset formation by paying attention not only to ``which products are profitable,'' but also ``how much they cost.''