Tuesday, April 20, 2010

Re: [TheOptionClub.com] Re: are options a zero sum game?

 

I am still a beginner at option trading (still doing papaer and virtual trading) so that may be why I feel like I am missing something, but it seems like we are having a great discussion and I am missing the point...
 
It seems to me that by definition ALL FINANCIAL transactions are a zero sum game.  The amount I lose in trading EXACTLY MATCHES the amount other people gain (whoever held the other side of my trade + the broker comissions). 
 
I think I understand that much, but I am missing why it is important whether or not trading options is a zero sum game or not.  Please help...


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