easy · Market Microstructure adverse-selection
Which of the following describes a 'Zero-Sum Game' in trading?
- A market where the price is always perfectly aligned with intrinsic value.
- A situation in which every participant loses money once commissions are paid.
- The total gains of winners are exactly equal to the total losses of the losers.
- A frictionless market state in which the bid-ask spread has fully collapsed to zero.
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