i am trying to get my head aroudn whether trading in say aussie equities is a zero sum game? My assessment is that isnt given slippage and brokerage, thereby making it a minus some game, but can anyone provide clarity on this?

A scenario I am trying to get clarity on is if 3 parties represent a pool of shareholder for a particular stock that is being heavily traded, (one might represent banks, another an equity holder and another a trader moving in a out of positions) and the stock is constantly going up, then are they all winners in that case? Say they are all holding $50 worth pf stock which they all bought on average of $40, so they all have a paper profit of $10) each , so an aggergate paper gain of $30

Say there is s/holder A, B, and C.

--

If s/h A decides to sell all their holding and gets a total of $45 (taking into acount slippage and brokerage, so a profit of $5),

-- s/h B does the same becuase he sees the stock drop quickly, he then liquididates his holdings and takes only $35 out of market ($5 loss after slippage and brokearge)

-- s/h C s**ts himself and takes his reduced holding out of market which is only now worth $26 (loss of $14 after borkerage and slippage)

A $5 gain

B $5 loss

C $14 loss

plus Brokerage = $6 (3 x $2 per sell trade)

so it equates to that total of $30 that all three had as paper profits initially

thereby making it a minus sum game because of brokerage, is the above example accurate? Or can there be a situation where all benefit, or must there always be others who have to lose their holding in order for someone else to gain a high price for their holding?

i'd appreciate it if someone can point me in the right direction on this

its been a bit of brain tease for me , thanks

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