Question
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How does price moves?
3 Answers
<p>When a sell order comes into the market that is bigger than the number of shares available at the current bid, then the bid price will drop, because the selling absorbs all of those shares at the current bid.</p><p> When a buy order comes into the market that is bigger than the number of shares available at the current offer, then the offer price moves up, because the buying absorbs all of those shares at the current offer.</p>
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<p id="isPasted">The profit level is what you determine you can make off it, say sell it to a buyer at 1.28 for 50 pips. So price will move up if there are more buyers than sellers and down if there are more sellers than buyers.</p><p>Buyers are groups of people that want something in limited supply. Demand is High + Low Supply = Higher Price</p><p>When bad news hits the wires and everyone wants out then…</p><p>Demand is Low + High Supply = Lower Price</p>
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<p id="isPasted">At its core, price moves through a continuous auction process where buyers and sellers negotiate in real-time. While most people think of a single "market price," every asset actually has two prices: a bid (highest price a buyer will pay) and an ask (lowest price a seller will accept). </p><p><strong>1. The Engine of Movement: Market Orders </strong></p><p>Price does not move until one side becomes "aggressive" and crosses the spread to meet the other side. </p><ul><li>Buying Pressure: When a buyer places a market order, they agree to pay the current ask price immediately. This "consumes" the available supply at that level. …</li></ul>
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