Local martingale
Local Martingales are an important part of probability and math. It's like a game where you have a chance of winning or losing money every time you play. Every time you do something in the game, you either gain or lose something.
You start by choosing a number, and then you roll a die or flip a coin. If it lands on the same number as the number you chose, you win something. If it doesn't land on the number you chose, you lose something.
So, to be a "local martingale," the game has to go on forever. That means that your chances of winning or losing have to stay the same every time, no matter how many games you have played. You could play thousands of games, but still have the same chance of winning or losing.
That's a local martingale. It's a way of understanding how probability works and how you can predict things using math.
You start by choosing a number, and then you roll a die or flip a coin. If it lands on the same number as the number you chose, you win something. If it doesn't land on the number you chose, you lose something.
So, to be a "local martingale," the game has to go on forever. That means that your chances of winning or losing have to stay the same every time, no matter how many games you have played. You could play thousands of games, but still have the same chance of winning or losing.
That's a local martingale. It's a way of understanding how probability works and how you can predict things using math.