The two envelopes paradox is a famous brain teaser of sorts, and not a true paradox. The problem is generally posed like this:

You are given a choice between two identical envelopes. One envelope contains some amount of money, and the other contains twice that amount of money. There is no way to distinguish between the two. However, when you choose one of the envelopes, before opening it, you are given the option of switching to the other envelope. Should you switch?

Why is this sometimes called a paradox? Well, if you choose to switch, you have a 50% chance of doubling your money, and a 50% chance of halving your money. If the amount of money in the envelope you initially chose is M, this reasoning suggests the expected amount in the other envelope is (2M + 0.5M) / 2 = 1.25M. This is more than M, so you should always switch.

But that would suggest once you’ve switched, you’re in the same position you were before you switched, so you should switch again. What is the problem with this reasoning?

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