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That's not how the market works. It is not zero sum. An easy counter point is dividend payouts.
by frockington1 7y ago
That's not how the market works. It is not zero sum. An easy counter point is dividend payouts.
- aldanor 7y agoOn the intraday scale less the transaction costs and dividend payouts. Trades are trades, if one party buys the other party sells and vice versa; there's always two sides.
- yellowstuff 7y agoI don’t follow. If a stock keeps going up a share could change hands 10 times in a day, with 9 traders having positive realized PNL and 1 trader having positive unrealized PNL.
- aldanor 7y agoExchange traded volume is still zero sum. Stock going up is driven by trades happening in the buy direction clearing the ask passive orders - someone had those limit orders there in the first place, and they're in the negative.
- frockington1 7y agoOr that person is taking profits, no reason they are in the negative. How do IPOs fit into your zero sum argument?
- aldanor 7y agoI'm only talking about intraday trading - FC wasn't caused by IPOs or dividends or other corporate actions. Whether you're taking profit or not doesn't matter - it's in the past. You lost the opportunity to close at a better profit at the end of the day - that's a relative loss.