A self-financing portfolio is admissible when its wealth satisfies the prescribed lower-bound restriction, typically a deterministic bound below. Nonnegative wealth is sufficient. This condition permits supermartingale bounds on discounted gains and excludes doubling strategies.
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An admissible trading strategy refers to a trading approach that meets specific criteria or conditions defined by a given financial model or regulatory framework. The term is commonly used in the context of finance, particularly in relation to optimal portfolio management and risk management. Key characteristics of admissible trading strategies include: 1. **Feasibility**: The strategy must be implementable under the constraints of the market, such as liquidity, transaction costs, and other trading limitations.