Zero-Sum Game

A zero-sum game refers to a situation where the total gains and losses in a particular market or transaction add up to zero. It implies that the profit made by one party is exactly offset by the losses incurred by another party. In investment or trading scenarios, certain markets can exhibit zero-sum characteristics. For example, in a stock market, for every buyer who makes a profit by selling shares at a higher price, there must be a seller who incurs a loss by selling at a lower price. The total gains and losses in the market balance out to zero.