One of the most common misconceptions about the markets is that markets move up because there are more buyers than sellers and that markets move down because there are more sellers than buyers. Normally, I would say this is nonsense, for today, I’ll be nice and settle on saying it’s impossible. The markets are a mechanism for matching buyers and sellers, that is what they do, they bring buyers and sellers together. If you are a buyer and there is nobody selling, then you will not be buying anything. You can’t buy fruit if no-one is selling it and you sure can’t buy contracts if there’s no seller either.
If this is news to you, then of course you are wondering what makes price move. If every buyer has a seller, then why does price move at all? First, lets make sure we understand what the price is.
If this is news to you, then of course you are wondering what makes price move. If every buyer has a seller, then why does price move at all? First, lets make sure we understand what the price is.
