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Originally Posted by fxscalper90
Conceivably you and the other trader mentoned will not be the only players in the market though, right?
I guess maybe so many ppl are losing that it doesn't really matter who wins... because there is always an ample amount of money floating around (to win). 
fxs |
In your example, if this was strictly one person market then you would both be flat, and you would realize a gain and the contra party a loss. To clarify your example, if you sold EUR's to begin the day you would need to cover by purchasing them, which would leave contra party short or less long. Now if EUR goes lower, you are technically the loser in the zero sum game, since you would have stood to profit on an additional leg down (opportunity cost). If it were to go higher then the contra party is the loser.
The same example can be applied to equity shareholders. The losers in an upward move in a specific stock is not only the short sellers, but those who sold at lower levels. Again, there is an opportunity loss.
Trading in my humble opinion is always a zero sum game, especially when you think of it in these terms. While some markets obviously have both hedgers and speculators there are still actual or potential gains created when any positions are closed or opened.