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Even if some traders think that they are playing zero-sum game - it does not mean that traders actually play zero-sum game. Benefit of trading is increased liq

• wpietri 13y ago
  It matters entirely for the psychology of the industry's culture. However, increased liquidity is of no direct value. It only matters if people get better prices, or get deals closed significantly sooner. For a trader's participation to be positive sum, the benefit of their capital has to be larger than the costs they impose. Given that every trader is working to make the opposite true, surely many of them are negative sum. Especially given that capital can be deployed to reduce liquidity just as well as increase it.