What does Scared Money mean?

Scared Money describes a situation where a player is afraid of losing money and, because of that, starts playing too cautiously or too nervously.

What does it look like in practice?

In poker, that player may fold too often, miss value, and avoid big pots. In a broader gambling sense, the term is used for someone who has put in more money than feels psychologically comfortable. In simple terms, scared money is not really about the amount itself. It is about the player’s state of mind when fear of losing starts damaging decision-making.