Short Term Trading Member Forum

[TL Trader]

I think Gary is right. Another way of looking at it might be that although shares in a company can be split or retired compared to futures there is a relatively fixed and finite number of outstanding shares or "float". Whereas with futures the number of contracts (open interest) fluctuates depending on who happens to be the buyer and seller for any given trade and at expiration the open interest of the futures contract in question goes to zero.
With stocks the shares are simply transfered from one owner to another at various prices. Theorectically unless a stocks share price goes to zero no one (Stock holders) necesarily has to loose. With futures there is absolutely a winner for every loser for every contract.