No ALL financial markets are zero-sum games. If those investors made money in the stock market, somewhere, someone, at some time lost money.
Are option trades a zero-sum game?
- Thread starter earth_imperator
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No ALL financial markets are zero-sum games. If those investors made money in the stock market, somewhere, someone, at some time lost money.
I never said that no wealth is created in the financial market. I just said it's a zero-sum game no matter which asset you trade or invest in.
Sorry but that is incorrect. If someone sells a stock at a profit, then, assuming it wasn't sold short, the original seller has only lost the OPPORTUNITY to make more money. Another way of looking at it - assume 90% of the market's investors are long and the market goes up 2% tomorrow, then 90% of the investors will make money and 10% will lose money. How is that a zero sum game?
how can it be a “zero sum game” if wealth is created? By definition “zero sum” means for one to earn another has to lose. “Created” means to add without corresponding loss.
"Sorry but that is incorrect. If someone sells a stock at a profit, then, assuming it wasn't sold short, the original seller has only lost the OPPORTUNITY to make more money. Another way of looking at it - assume 90% of the market's investors are long and the market goes up 2% tomorrow, then 90% of the investors will make money and 10% will lose money. How is that a zero sum game?"
This thread relates to options, not stock. Stock is not zero-sum either when you include carry and rebate.
If I buy a stock today with no dividends - hold it for a year and sell it at the exact same price - have I lost money? Think it through.
This thread relates to options, not stock. Stock is not zero-sum either when you include carry and rebate.
If I buy a stock today with no dividends - hold it for a year and sell it at the exact same price - have I lost money? Think it through.
I will let you figure out how wealth can still be created in the financial industry even though trading and investing in the financial market is a zero-sum game.
thats the response someone gives when they realize they’ve said something that doesn’t make sense and are too insecure to admit it on an anonymous forum.
When I make money trading options it's typically from a market maker and a market maker isn't in business to lose money or from some sucker who deserves to lose his money to learn a lesson, so go ahead and make all the money you want from trading options and don't feel guilty about anybody else losing money.
@lightninboy, you might be good in your trades, but it still needs some luck, b/c you can't predict 100% what the underlying will do till expiry of the option. Ie. a loss is not always avoidable, IMO.
So, the success of a trade depends on more factors than just the counterparty, IMO:
Btw, if you have found a way to avoid loss, let me/us now, please
So, the success of a trade depends on more factors than just the counterparty, IMO:
Btw, if you have found a way to avoid loss, let me/us now, please
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