The Bull

Saturday 11

February, 2012 3:24 PM

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Zero sum game

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What does it mean?

A situation where one trader's gains result from another trader's equivalent losses. The net change in total wealth among traders is zero since the wealth is just shifted from one to another..


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TheBull says...

For every buyer there is a seller, and for every long position there is a short position. This means that for every dollar that is made there is a dollar lost.

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