Reitings: Full Star Full Star Full Star Full Star Full Star
Interesting Zero Sum Game
Iepriekšējās 1 2 3 4 Nākamais
togr

Biedrs kopš Feb 22, 2011  3860 ieraksti vontogr (togr) Oct 05 2016 at 11:32 (labots Oct 05 2016 at 11:32 )
Hi,

Daily traded volume on Forex market is about $6 trillion.

Every trade has to have 2 counterparts.

So every time you for example buy 1 lot EURUSD someone on the other side of planet has to sell EURUSD.
So each bid and ask need to find counterpart to execute the trade.

My point is if the same amount of currency is sold and bought at the very similar price, how can the price move.

E.g. you sell 100 000 EUR and someone buy these 100 000 EUR to make the trade happen.

I would say the price move DOWN because more people SELL the currency but how can be such sell executed without someone BUYING the same amount of currency ? :)

I like what I trade, I trade what I like
StoneHeart

Biedrs kopš Dec 21, 2010  131 ieraksti Ivan (StoneHeart) Oct 05 2016 at 12:14
togr posted: ...
I would say the price move DOWN because more people SELL the currency but how can be such sell executed without someone BUYING the same amount of currency ? :)

Some of SELLER change his price to lower.
It is possible, if he expect price to move 100 pips down, and is ready to enter to market at (5-10 pips) worst price, where is BUYer available.
This is not possible for those , who already BUY, and expect to SELL at higher price. ... hi is also SELLER, but hi is NOT ready to sell at worse price.

Small GAIN, big WIN
McLeonis

Biedrs kopš May 16, 2014  13 ieraksti McLeonis (McLeonis) Oct 05 2016 at 12:51
Hello Togr,
Here is my opinions:
Currency has a highest liquidity. Not only trader buy and sell currency. Central banks, Commercial bank, InterBank, Retail, Hedge Fund... The market is more large than we think and we know.
So, there is always someone take the counterpart to execute your trade. About the same amount of currency, your broker performing that task.

I don't throw darts at a board – I bet on sure things.
5astelija

Biedrs kopš Oct 15, 2014  44 ieraksti 5astelija Oct 05 2016 at 13:28
I don't see the paradox here.. The chart just shows the prices buyers and sellers came to agreement in the past.
Current agreement price doesn't care about other agreements, it can be any value - though it is usually close to the last price, which makes charting possible.

never ring the bell
togr

Biedrs kopš Feb 22, 2011  3860 ieraksti vontogr (togr) Oct 05 2016 at 17:26
The point is if at every moment there are equal buy/sell orders (as each order needs counterpart to execute) how could this move th e price anywhere

I like what I trade, I trade what I like
SaltyWaters

Biedrs kopš Mar 22, 2010  238 ieraksti SaltyWaters Oct 05 2016 at 18:03
togr posted:
The point is if at every moment there are equal buy/sell orders (as each order needs counterpart to execute) how could this move th e price anywhere


I understand your point. It makes perfect sense. It seems someone is manipulating the price. Actually, manipulating the whole thing!

The best excuse I've heard is the orders are filled for the best offer. If so, why it keeps moving while on waiting.

The only way to end Poverty is by getting rich. Do your part, start now. The sky is not the limit, your mind is.
5astelija

Biedrs kopš Oct 15, 2014  44 ieraksti 5astelija Oct 06 2016 at 06:12
nope, still can't see it :D

Orders need a counterpart to fill, yeah, but there is usually more bulls than bears or vice versa. The price goes up because bulls buy everything at price 1€ - to buy more, bulls are then ready to pay price 2€ which more people are willing to sell at.

never ring the bell
5astelija

Biedrs kopš Oct 15, 2014  44 ieraksti 5astelija Oct 06 2016 at 06:13
Well, the zero sum thing maybe an illusion: we usually think the chart is some continuous line, like y=2x or something, while it is actually a series of INDIVIDUAL points we like to connect together fat

never ring the bell
tandixoo

Biedrs kopš Mar 10, 2014  1 ieraksti tandixoo Oct 06 2016 at 06:30
price that we see in our platform was created in interbank market,,,, interbank market is closed market and have limited access. only some large bank and central bank have access to interbank market.


prices are determined based on the value of deals and accepted by market participants in the interbank market
so prices that we see in our platform is the price that has been transacted in interbank market....



McLeonis

Biedrs kopš May 16, 2014  13 ieraksti McLeonis (McLeonis) Oct 06 2016 at 06:31
togr posted:
The point is if at every moment there are equal buy/sell orders (as each order needs counterpart to execute) how could this move th e price anywhere

This is a very wide question so I'll cut to the chase: supply and demand. That how the price move.
There is always someone take the counterpart to execute your trade doesn't mean they will take it at any cost (price). That depend on their policies, strategy, reserve ratio...
High Demand + Low Supply = Higher Price
Low Demand + High Supply = Lower Price
The price move down when more people selling than buying and there aren't equal buy/sell orders.
Sometime you get requote, slippage when the broker don't have enough counterpart to execute your orders.

I don't throw darts at a board – I bet on sure things.
Iepriekšējās 1 2 3 4 Nākamais
Producer Price Index - Input (QoQ) (6h 4min)
Gold stabilizes near $1180 as stocks pus...(1 min ago)
EURUSD 1.13721 GBPUSD 1.27105
USDJPY 111.045 USDCAD 1.31594

Tools

Kopiena

Apskats

Brokeri

Platforma

Atbalsts


Twitter |  Facebook |  Lapas karte  |  Noteikumi  |   Privacy Policy
©2018 Myfxbook Ltd. All Rights Reserved.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions. Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.