spike, you are correct about the stock market but wrong about the futures market.
i will explain this again. there is a very significant difference between futures (and options for that matter) and stocks. i have already explained this, but you need ot keep rereading this, and/or read up on futures because if u think futures are not a zero sum game, you don't understand futures.
a stock represents ownership of a company (a portion thereof)
a futures contract does not. a futures contract is an agreement, a binding one.
for EVERY long futures contract, there is a short futures contract to offset it. ditto for options. somebody WROTE the call or put you bought. futures aren't written, but they necessarily have an offsetting futures contract. they have to. by their nature. that is not the case with stocks.
futures have somehwat of a different purpose than stocks. futures are used for - speculation, for hedging, but essentially they are the ultimate price discovery mechanism FOR the underlying entities they represent. they are pure supply/demand vehicles.
futures are symmetrical. that is what makes them zero sum (less than zero sum whne including commissions, but let's spare that complexity for now).
stocks are not symmetrical
THAT is the difference
again, if u think futures are not zero sum, you need to read up. it is not arguable. it is definitional at the most basic level.
futures contracts can be created out of thin air, because they don't represent a portion OF the S&P, Dow, etc. they represent two opposing parties making an agreement regarding that underlying basket of stocks.
futures also, unlike stocks, have to be rolled over, since futures contracts have an expiration, etc. but that might make the issue even more complicated for you.
of COURSE you would participate in the growth of the economy by being long the futures from the past (assuming we are not talking about the Nasdaq from 2000 to 2005 )
, but you ARE participating in a zero sum game in the futures.
you are not in stocks.
i will explain this again. there is a very significant difference between futures (and options for that matter) and stocks. i have already explained this, but you need ot keep rereading this, and/or read up on futures because if u think futures are not a zero sum game, you don't understand futures.
a stock represents ownership of a company (a portion thereof)
a futures contract does not. a futures contract is an agreement, a binding one.
for EVERY long futures contract, there is a short futures contract to offset it. ditto for options. somebody WROTE the call or put you bought. futures aren't written, but they necessarily have an offsetting futures contract. they have to. by their nature. that is not the case with stocks.
futures have somehwat of a different purpose than stocks. futures are used for - speculation, for hedging, but essentially they are the ultimate price discovery mechanism FOR the underlying entities they represent. they are pure supply/demand vehicles.
futures are symmetrical. that is what makes them zero sum (less than zero sum whne including commissions, but let's spare that complexity for now).
stocks are not symmetrical
THAT is the difference
again, if u think futures are not zero sum, you need to read up. it is not arguable. it is definitional at the most basic level.
futures contracts can be created out of thin air, because they don't represent a portion OF the S&P, Dow, etc. they represent two opposing parties making an agreement regarding that underlying basket of stocks.
futures also, unlike stocks, have to be rolled over, since futures contracts have an expiration, etc. but that might make the issue even more complicated for you.
of COURSE you would participate in the growth of the economy by being long the futures from the past (assuming we are not talking about the Nasdaq from 2000 to 2005 )
, but you ARE participating in a zero sum game in the futures.you are not in stocks.
