I say that exchanges, like casinos, always earn and always play against their client. I didn't say that trading is like a casino.
That's what casinos do, Play against their clients/gamblers. I don't know what you misunderstood from here
Derivatives exchange - Traders betting against each other
Casino - gamblers betting against the casino The statement that exchanges earn on commissions is a delusion.
They do, and you see your trading fees getting chopped. Otherwise, if they didn't then why would they keep cutting off those trading fees?
Derivative exchanges make money from market making, which encourages liquidations or stop losses. The income from commissions serves more to maintain the infrastructure, rather than to earn money. The main earnings are obtained due to the fact that derivatives exchanges liquidate deposits from their users due to their greed (when they use high leverage) and inexperience.
You make it sound like exchanges are the "only ones market making", that's if you claims are even true because you haven't shown us an instance where exchanges have acted as market markers and earned money continuously via market marking. Are you trying to say market makers don't get liquidated if the market swings in the opposite direction?
So according to your scenario, exchanges such as FTX, Bybit, Binance, Coinbase Pro, Bitfinex will coordinate to act as market markers while all of them shorting at ago so that the market drops, and they earn while all "normal" traders trying to long lose out via liquidations?
The comparisons you're trying to draw are not even close to how casino operate, if that was your intention.