Market Mechanics

In this post i will explain you the underlying market mechanics and what drives price.

The Main purpose of the markets no mather what market it is , is simply to fascilitate a trade between to participants , where in the case of a
trade both the buyer and seller agreed on a certain price , wich for whaterver the reason may be value for them..

as we know no that in order to fascilitate a trade we need boht a buyer and a seller and for that the market and price is alwasys looking to attract them both
so the price is looking for liquidity , the price is advertising itself all the time to attract a buyer and a seller..

we can also think of it as a two way auction where the auctionator first screams out for ex. 10 and declines the price till a buyer is found..
9,8,7. at 7 a buyer steps up... now the auctionator increases the price as the buyer may have attracted new buyers.. ie created demand....

Thats it! Demand and Supply DRive the markets! (PreOff) its that simple! ;)

Stay Tuned!

Posted in: market,mechanics