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To: Toddsterpatriot

What kind of trade IS zero sum ?

It’s against the whole idea of trade.


46 posted on 01/22/2008 8:34:24 AM PST by Rummenigge (there are people willing to blow out the light because it casts a shadow)
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To: Rummenigge
What kind of trade IS zero sum ?

Trades on a futures exchange. A seller writes a contract and the buyer buys it from him.

The profit made by one side is matched by the loss on the other side. They both pay commissions and fees, so it's actually a negative sum trade.

47 posted on 01/22/2008 8:41:48 AM PST by Toddsterpatriot (Why are protectionists so bad at math?)
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