Zero Sum Forex Trading Game
Zero-sum game: zero-sum is a situation in game theory in which one person’s gain is equivalent to another’s loss, so the net change in wealth or benefit is zero. a zero-sum game may have as. 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 commodity). Forextrading is at best a zero-sum game but that depends on how you view the factors of the game. the inclusion of brokers (thus spreads and commission) as a “player” in the game makes it a zero-sum game. brokers being excluded make it negative sum. a zero-sum game is a situation where one players gain/loss is exactly balanced by the. Conclusion. the forex zero-sum game is a way of trading and earning a second income with a lower risk than equities. because you own two currencies, your investment cannot go to ze...
