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Originally Posted by ERA
Sorry forexenator this observation is complete wrong, you have it the wrong way around. As an example, If a stock goes to new all time highs there are no losers amoung the buyers, because everyone either bought at a lower price or is at break even. The only losers will be a small minority who shorted the stock and the opportunity profit some stockholders have missed out on by selling their stock to someone else earlier ( but this is not a monetary loss showing up in their account it's purely the ' cost of selling early and missing out'). It possible in stocks for wealth to be created as they move higher.
Forex market no wealth is created , losers pay the winners, it is less than a zero sum game due to spreads constantly grinding down the pot and the only way the pot to increase is from a net inflow of players and funds.
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If we take the EUR/USD as 1.0000 , now I will start my day by selling EUR/USD and themarket goes my way and I found the EUR/USD became 0.9000 , Now I will close the position, on the other hand someone may start at that level by buying and then the market will increase and he closes the position. so both of us won in that day. Now I don't have to get someone money to make profit in this FX.