The Zero-Sum Game of Speculative Trading
Speculative trading, often termed a zero-sum game, involves market dynamics where one trader’s profit is matched by another’s loss. This balance is evident in futures, options, and derivatives markets.
Speculative trading, often termed a zero-sum game, involves market dynamics where one trader’s profit is matched by another’s loss. This balance is evident in futures, options, and derivatives markets.
Absorption in trading is a process where large buy or sell orders are integrated into the market without significant price changes. By understanding this phenomenon, traders can better identify key support and resistance levels, make informed decisions, and develop effective trading strategies.