I think you mean “Forex is a zero sum game”. What this means is for every gain in your account, there is an equal loss in someone else’s account. Money is not “made” per-say, it is simply transferred. The “sum” of the entire market never changes, all the gains subtract all the losses = zero · 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 year) it simply is a zero sum game. end · Principles of economic theory will tell you that the forex market meets the criteria of a zero-sum game, but not for all participants. Central banks are at the top of the totem pole in terms of forex hierarchy, and they do not play a zero-sum game when they enact national monetary policies or
Forex: A Zero Sum Game? - The FX View
Principles of economic theory will tell you that the forex market meets the criteria of a zero-sum game, forex zero sum game, but not for all participants. Central banks are at the top of the totem pole in terms of forex hierarchy, and they do not play a zero-sum game when they enact national monetary policies or balance their reserves. The forex zero sum game goes for American tourists who visit Japan and exchange dollars for yen. Individual forex investors, on the other hand, engage in currency exchange speculation when they take any kind of position.
The retail platform you use for forex trading will take funds from the losing trades in order to settle the positions that come out on top; naturally, the broker will also pocket a few pips for commission purposes, forex zero sum game. If the definition of a zero-sum game reminds you of a casino, you have thoroughly understood it. Now that we have established that forex is a zero-sum game for individual traders, you should not think about this in a negative way; what you should think of, forex zero sum game, however, is how to make the most out of it.
Virtually all forex brokers operate with two accounts per client: One is a deposit account where you keep your funds, and the other is your portfolio of positions. Your deposit account should be earning compound interest in order to make your trading experience more profitable, and you should make it a point to keep as many of your profits as possible in this compounding account, forex zero sum game.
The goal is to always have an earning advantage when you settle your trades. If your forex broker does not pay compound interest to your client account, you do not necessarily have to take your trading elsewhere; look for a bank that offers high-yield savings accounts where you can deposit your forex profits.
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, time: 4:11The Forex Zero-Sum Game - The Lazy Trader
· forex is a zero sum game, by definition, as are all commodities. it could be considered a negative-sum because of broker spread, but most usually call it zero sum · 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 year) it simply is a zero sum game. end I think you mean “Forex is a zero sum game”. What this means is for every gain in your account, there is an equal loss in someone else’s account. Money is not “made” per-say, it is simply transferred. The “sum” of the entire market never changes, all the gains subtract all the losses = zero
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