### Game Theory: Is Forex a Zero-Sum Game?

1/28/ · The most common statement I hear from traders is “The forex market is an efficient zero-sum game market and therefore sharing information may expose my edge.” So what is a zero-sum game and how do I know if the above statement is true? Let’s start by talking about game theory and the different types of mathematical games. 9/26/ · This destroys the oft-repeated fallacy that every Forex trade is a zero-sum game. By the way, stock trading is not a zero-sum game either. Suppose you buy shares of XYZ at $40, and sell it Author: Vicky Ferrer. Proper positioning is the key element, getting in a market is easy, getting out alive is the next best thing! Marcella Says: June 10th, at pm. Actually, Forex is not a zero sum game because it does not have a finite ending point. It is not like a basketball game, which .

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So if FX a zero sum game? Of course it is. Just read John Forman’s article on the difference between asset markets and contract markets. FX like all futures markets (including ironically enough those for the Dow and S&P) is a contract based market. • John Forman: Retail Forex Trading is a Negative Sum Game So let’s establish once and for all that yes -- FX is a zero sum game because it is a speculative market. Proper positioning is the key element, getting in a market is easy, getting out alive is the next best thing! Marcella Says: June 10th, at pm. Actually, Forex is not a zero sum game because it does not have a finite ending point. It is not like a basketball game, which .

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FX market is a zero sum game? admin 0. So let’s establish once and for all that yes — FX is a zero sum game because it is a speculative market. And like all speculative markets is simply transfers risk from winners to losers. But I think this point misses the larger picture. 4/21/ · the reason a zero sum game can become a negative sum game is because of commissions and the spread (the broker and market maker are making a living off of your trades). so unless you are one of them, you are playing a negative sum game by trading commodities (and currency is a . 5/9/ · In forex you have no underlaying security that creates any value, so for every winner you must find a looser. So the job of forex brokers is not the trading, their job is to constantly get new "loosers" into the game-field in order to keep the game running, the commissions and spreads paid (or in other words: bring 10 sheeps to 1 wolf every.

### Conclusion

So if FX a zero sum game? Of course it is. Just read John Forman’s article on the difference between asset markets and contract markets. FX like all futures markets (including ironically enough those for the Dow and S&P) is a contract based market. 5/9/ · In forex you have no underlaying security that creates any value, so for every winner you must find a looser. So the job of forex brokers is not the trading, their job is to constantly get new "loosers" into the game-field in order to keep the game running, the commissions and spreads paid (or in other words: bring 10 sheeps to 1 wolf every. 9/26/ · This destroys the oft-repeated fallacy that every Forex trade is a zero-sum game. By the way, stock trading is not a zero-sum game either. Suppose you buy shares of XYZ at $40, and sell it Author: Vicky Ferrer.

### Don’t lose everything…

9/26/ · This destroys the oft-repeated fallacy that every Forex trade is a zero-sum game. By the way, stock trading is not a zero-sum game either. Suppose you buy shares of XYZ at $40, and sell it Author: Vicky Ferrer. • John Forman: Retail Forex Trading is a Negative Sum Game So let’s establish once and for all that yes -- FX is a zero sum game because it is a speculative market. Proper positioning is the key element, getting in a market is easy, getting out alive is the next best thing! Marcella Says: June 10th, at pm. Actually, Forex is not a zero sum game because it does not have a finite ending point. It is not like a basketball game, which .

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