The Money We Lose, where She Gone???

[Simy]

Originally Posted by uptick

um...nope. ready rhodytraders post below.

I had read it before I posted, my posts are apparently not in the same order as yours, latest post is the last post.

[rhodytrader]

Originally Posted by Simy

Is it not possible for one person to sell, then another to buy, and both profit?

Don't use the terms sell and buy, since you're not actually doing either. Link long and short. For every short there must be a long. As such there will always be someone losing when you are gaining, and vice versa.

Or more aptly is it not possible for one person to sell shortterm, and another to buy longterm? and them both profit?

Of course it is, but both trader's profits will come from someone on the other side of their respective positions. For example, the short-term short may make money, but that will come from the long-term long. When the short covers, he essentially just inserts someone new in his place opposite the long-term long.

seeing as nothing is actually exchanged, I dont see why its not possible for everybody to go up, short of knowing what to, and what not to do. Before there were us lil guys offsetting the big guys, was it common for a big bank to put millions 'on the table'?

The fact that nothing is exchange is exactly why it isn't possible for everyone to profit. It's only in actual asset markets like stocks where things are really transferred between buyers and sellers where you don't necessarily have opposing positions.

As for the banks, absolutely.

[Piphacker]

Originally Posted by rhodytrader

Don't use the terms sell and buy, since you're not actually doing either. Link long and short. For every short there must be a long. As such there will always be someone losing when you are gaining, and vice versa.



Of course it is, but both trader's profits will come from someone on the other side of their respective positions. For example, the short-term short may make money, but that will come from the long-term long. When the short covers, he essentially just inserts someone new in his place opposite the long-term long.



The fact that nothing is exchange is exactly why it isn't possible for everyone to profit. It's only in actual asset markets like stocks where things are really transferred between buyers and sellers where you don't necessarily have opposing positions.

As for the banks, absolutely.

Thank's Guy's Some great information in detail i gained today...
PipHacker!!!