First of all, what is a zero-sum game? Zero-sum game, also known as zero-sum game, is one of the most important concepts in game theory, which is relative to non-zero-sum game. Refers to all parties involved in the game. Under the strict competition, the gains of one party will inevitably mean the losses of the other party, and the sum of the gains and losses of all parties in the game will always be "zero". There is no possibility of cooperation between the two sides. Generally speaking, their happiness is based on each other's pain, so both sides will do their best to "harm others and benefit themselves", which is completely contrary to the concept of "* * * win" in modern society.

For example, when A and B play chess, each piece counts as 1, so A eats another piece+1, and the corresponding B loses a piece-1, so 1+(- 1)=0. By the same token, if one side wins, the other side will lose. If we calculate that winning a game is 1 minute and losing a game is-1 minute, then if A wins X, then B loses X. Similarly, if A loses Y, then B wins Y. In this way, the total score of A is (x-y) and that of B is (y-x). Obviously, (x-y)+(y-x)=0, which is the mathematical expression of zero-sum game.

So what is the relationship between futures and zero-sum game? We often say that the essence of futures trading is a game between buyers and sellers in the market. One party is indeed profitable and the other party is bound to lose money. However, futures trading is not a real zero-sum game, because there are some external factors to consider. It is this factor that makes the sum of profits and losses of both sides often less than zero, which becomes a negative sum game, and profits and losses are equal to negative numbers. So we often say that 80% to 90% people in the futures market are losing money, and only 10% people are making money. So, losing money is equal to making money? Not really!

Say futures trading is a zero-sum game. Because in the futures market, for every buyer, there must be a seller. Every trader who buys and sells futures contracts operates the market on the basis of believing that his judgment on market trends is accurate.

The buyer of the gold contract tried to establish a long position because he firmly believed that the market would continue to rise in the future. Of course, the purpose of the buyer's purchase of the contract may also be to hedge the existing short position. In both cases, he doesn't think that the price of gold contract will fall sharply in the future (or, at least, he doesn't think that he will suffer from market reversal).

Sellers of gold contracts sell because they firmly believe that the price of gold contracts is about to fall. Similarly, if a new position is not established, the purpose of the contract seller's sale may also be to hedge the existing long position. In both cases, the seller firmly believes that the market price is unlikely to rise sharply in the future (or does not believe that the market price may reverse).

According to their previous market research results, both parties to the transaction judge whether the transaction and price at that time are appropriate. However, how do two individual traders form two completely different views on the future trend of the market? The answer to this question is that there is no answer.

The operation of the futures market is like a wild beast wandering around, and its trend is not much different from the waves in the ocean. Whether we choose to control them or not, they always exist objectively. For a trader, how to choose the way to approach these waves will determine your success or failure.

Let's imagine how many people were frightened by the stormy waves in Hawaii. In the face of huge waves, experienced surfers can ride the waves with extremely elegant posture and enjoy the pleasure of the ocean. This is possible because these surfers have learned how to make the power of the waves serve them. You can do the same thing in the market. After learning and mastering the inherent law of the ebb and flow of the tide, you can turn the futures market into a stage that will bring you rich returns.

Sometimes, the sea is calm, and some small waves appear from time to time on the gently undulating sea; Sometimes, the ocean is rough, and huge steep waves and valleys come and go. In these different periods, we can choose to participate or watch. This market, like the ocean, will not be affected by our choices. In fact, the market has no feeling at all. It won't imprison anyone, and it won't have any regrets.

Back to the original question. In this way, it seems that the market will not be affected by our choice, so there are buyers and sellers in the market. But why are the profits and losses of both sides always unequal? That is, when each trader trades, some funds will not flow into the market. Where did they go? Maybe many people thought of it at this time, yes, it is the handling fee! Whether you are a buyer or a seller, some funds will flow out of the market. Assuming that there is no new inflow of funds in the whole market and the amount of funds in the market is fixed, these funds will continue to flow between the two parties through the transactions between the two parties, but each flow will generate a handling fee, so that the total amount of funds in the whole market will continue to decrease. We can even say that if there is no new capital inflow, the market capital will be sucked away by the handling fee sooner or later.

This is why futures is not a zero-sum game in the strict sense, but a negative-sum game. After all, there must be a reason why 1+ 1 is not greater than 2. The purpose of writing this article is to facilitate the broad masses of futures people to better understand the nature of the futures market and facilitate you to better study the market. Finally, I hope that the majority of futures investors will invest rationally, recognize the market clearly, and increase their income continuously and steadily!