is Forex a zero sum game ?
futures io futures trading

is Forex a zero sum game ?
Updated: Views / Replies:7,555 / 16
Created: by momop540 Attachments:1

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 100,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Thread Tools Search this Thread

is Forex a zero sum game ?

  #1 (permalink)
seattle, wa
Trading Experience: Intermediate
Platform: IBKR
Favorite Futures: EUR/USD, ES, TF etc
Posts: 26 since Jul 2010
Thanks: 13 given, 5 received

is Forex a zero sum game ?

As far as I know, all the securities (stocks/futures) are all zero sum game. Not sure if commodity trading is also a zero sum. Is Forex a zero sum game too ?

Reply With Quote
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

  #3 (permalink)
United States of America
Trading Experience: Advanced
Platform: NT
Posts: 1,149 since Aug 2009

At best, it's a zero sum game.

Reply With Quote
  #4 (permalink)
seattle, wa
Trading Experience: Intermediate
Platform: IBKR
Favorite Futures: EUR/USD, ES, TF etc
Posts: 26 since Jul 2010
Thanks: 13 given, 5 received price can be destroyed without anyone winning ?

Reply With Quote
  #5 (permalink)
United States of America
Trading Experience: Advanced
Platform: NT
Posts: 1,149 since Aug 2009

Well, the losers may not know, but the winners--banks and market makers--know.

Reply With Quote
  #6 (permalink)
Site Administrator
Manta, Ecuador
Trading Experience: Advanced
Platform: My own custom solution
Favorite Futures: SPX, Emini Futures
Big Mike's Avatar
Posts: 48,118 since Jun 2009
Thanks: 30,749 given, 91,819 received

I do not and have not traded FX, but from what I have read from other people on the forum, I would not classify Forex as a zero sum game, I would say instead it is a losing proposition.

This is due to the wide bid/ask spreads and due to the unregulated broker markets that bet against you.

You would be better off trading currency futures, in my opinion, if you are asking the question.


Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member (see why)

Follow me on Twitter Visit my Facebook Visit my futures io Trade Journal Reply With Quote
  #7 (permalink)
Trading Experience: Master
Platform: Marketdelta and Ninja
Broker/Data: Velocity
Favorite Futures: NQ
Posts: 670 since Apr 2010
Thanks: 64 given, 526 received

I would agree with big mike on this....
You broker will create an unfair advantage by manipulating price, making sure you don't get filled..

Thats not a zero sum game

Trading currencies on the CME would be a zero sum game.

Reply With Quote
  #8 (permalink)
Market Wizard
Berlin, Europe
Trading Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
Fat Tails's Avatar
Posts: 9,813 since Mar 2010
Thanks: 4,239 given, 26,488 received

It comes close to a zero-sum game if you include the forex broker. The broker wins and the traders lose. So it is a losing proposition for the trader. So you need to overcome transaction fees, the spread and your trading costs.

For shorter time frames and a typical retail account the transaction cost is likely to be much higher than your edge. So even trading off a 5 minute chart has the odds against you. To trade shorter timeframes than that profitably is next to impossible.

Reply With Quote
  #9 (permalink)
Posts: 1,081 since May 2010

There's only a few forex brokers on this planet that will let you make money on Forex and that one of them is Dukascopy and I might say PFG if you negotiate good.

Because of the brokers profit this is not a zero sum market because in a zero sum market there is for every loser an even winner, in forex there is a broker in between that takes profit of the winner, so it's not 'even' anymore.

I must be doing something wrong because for me winning in Forex cash markets is possible.

Reply With Quote
  #10 (permalink)
United States of America
Trading Experience: Advanced
Platform: NT
Posts: 1,149 since Aug 2009

A bit OT: I've always been fascinated with economic theory and zero sum. For those who seek more brain food, I suggest reading Lester Thurow's, The Zero-sum Society.

Reply With Quote


futures io Trading Community Traders Hideout > is Forex a zero sum game ?

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

futures io is celebrating 10-years w/ over $18,000 in prizes!

Right now

$250 Amazon Gift Cards with our "Thanks Contest" challenge!

Right now

Similar Threads
Thread Thread Starter Forum Replies Last Post
APP: The Forex Game babypowder Off-Topic 0 August 4th, 2011 09:53 AM
Two indexes total sum. yunakhan1 NinjaTrader Programming 2 June 14th, 2011 06:42 PM
What's wrong with my SUM logic? gordo NinjaTrader Programming 1 July 18th, 2010 08:04 PM

All times are GMT -4. The time now is 04:05 PM. (this page content is cached, log in for real-time version)

Copyright © 2020 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432,
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts