Is Forex a ZERO Sum game?

[BON10]

I ve a matter regarding the triumph lose sport in Foreign Exchange. Is Foreign Exchange a zero sum game? I.e. is your winning of a trader in one portion of the world drives the presence of a losing trader some where else? To put it differently, hypothetically speaking, can all traders win in a single given time? Or this is hopeless?

[Xesvuties22]

Read the ZeroSum document from here.

I think part of the last comment was from one of Rob Booker's e-books (Woodchuck Possum)

[CuruTkSaca]

I ve a question regarding the win lose sport in Currency Market. Is Currency Market a zero sum game? I.e. is your winning of some trader in 1 portion of the world drives the presence of a losing trader some where else? To put it differently, hypothetically speaking, can all traders acquire in one given time? Or this is hopeless?

The brief answer is yes, Currency Market is a zero sum game. But when you factor in the spread and commissions it's a negative sum game, as is all commodity trading. The sole major non-zero amount game is the stock market. Unless somebody can think of another?

[Un]

Merlin, counterfeiting is not Zero sum... SMJ

the brief answer is yes, forex is a zero sum game. However, when you factor in the spread and commissions it is a negative sum game, as is all commodity trading. The only major non-zero sum game is the stock market. Unless somebody can think of a second?

[cSesidesy2424]

that the short answer is yes, Foreign Exchange is a zero sum game. But when you factor in the spread and commissions it's a negative sum game, as is all commodity trading. The sole major non-zero amount game is that the stock market. Unless somebody can think of another?

Why stock market is zero sum game? U should also pay commission ,right?

[SoesrsuvudesS]

Why stock market is zero sum game? U also need to pay commission ,right?

hmmm....


Trust me... in this world there is not any such thing as FREE LUNCH.

Nothing is free...

No money No more honey....

No money No Conversation

So.... in orther words....

You have to pay at least the minimal before profits can arrive in.

There's a saying in chinese no let go of little money, how do large money come in .... Direct translation.

I think is a zero sum game.... Because we are just 'clinging onto the economics' to make more money. Technically you shldnt create any losses to the margin you pump. As mentioned previously, brokers put a minimal limit to you stop loss, hence broker earns some from here. (no economic variable included just purely brokerage solutions).

If economic purpose is YES. When there is a transaction. There bound to get inners and lossers.

[cescesi27]

Okay guys, I had a different notion about what zero-sum meant, I had believed it was more like a win-win.

Following is a link to wikipedia's definition which help to clean it up for me.

http://en.wikipedia.org/wiki/Zero-sum

[Sesw13]

Great thread so far...!

[doSukestosson]

Okay guys, I had another idea of what zero-sum meant, I had believed it was like a win-win.

Here's a link to wikipedia's definition that help to clean this up for me.

Http://en.wikipedia.org/wiki/Zero-sum

I think I tend to agree with Merlin, no matter how you specify what zero-sum ways.

In a zero-sum match, the gains on a single action = losses of a different action. So unless you are not paying for a spread or commission, then this isn't possible (unless you would like to be wholly esoterical and comprise the spread as a triumph by a third party).

However, consider it like this. . .no one trading thing could ever accumulate all of the cash invested in the forex market, it's impossible. . .the brokers and the banks are going to take a cut of each transaction, and therefore, it's impossible for a 1-complete winner.

Incidentally, tournament poker without a rake is a zero-sum game. . .at a point, 1 man will have each of the chips invested in a tournament.

[TaSuyakges]

I think we often forget the fundamental fractal character of this market. It's what makes it all work. All of us trade on various time horizons with various objectives. A number people just try to conserve capital while others are trying to gamble millions of dolars, yen etc.. A number of scalp while others remain ina exchange for weeks. One winner can offset another winner; not always but sometimes.