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Economics
Zero-Sum Game
A situation where one person's gain is exactly equal to another person's loss.
Many financial derivatives are zero-sum games. In contrast, economic growth and innovation are positive-sum games where total wealth can increase. Understanding this helps separate trading from value creation.
It's a pie of fixed size — the bigger your slice, the smaller everyone else's must be.
Real world: In futures or options trading between two parties, every pound one trader gains is exactly one pound the other loses. The total wealth doesn't change.
💡 Zero-sum games mean someone must lose for you to win — choose your battles carefully.