Zero-Sum Game

A situation in which one participant's gain is exactly offset by another participant's loss, meaning the total wealth in the system does not change. Futures and options markets are classic zero-sum games -- for every dollar a winning trader makes, a losing trader on the other side loses a dollar (before transaction costs, which actually make it negative-sum). The stock market itself, however, is not zero-sum over the long run because companies create real economic value through earnings growth and dividends.