FOREX - Trends, Forecasts and Implications 2015(continued) - page 70
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You've been told a hundred times....potatoes aren't just sold at the market... but also around the corner...
The price can also depend on the price of petrol... so you have to bring it in first... etc...
There is someone to trade on sticks)))
Why complicate things when you can successfully trade by guesswork, looking only at the chart! Which is the crowning glory of all market inputs, volumes, futures, options and p.c.
But that's the past. There are comrades here who see the future ))
You've been told a hundred times....potatoes aren't just sold at the market... but also around the corner...
And its price can also depend on the price of petrol...so you have to bring it in first... etc...
A la Sensei)))
Sorcerer, write a poem, eh? At least get an Asian girl...
They're crumbling... The seeds fall...
Like tears...
You start in the spring.
Zogman, I can feel that you have never traded in a simple bazaar)))
So let's imagine a bazaar, a bunch of potato sellers, they all have a price of about a tenner per kilo, they are expensive, very expensive, there are no buyers, and there is silence.
And now imagine that there is a market maker. He must act as a counterparty to the transaction if the other party is absent. And he buys ten roubles from everyone who wants to sell. Where does that lead to? Price rises to 11. What happens next? People, seeing that tomorrow it might be even more expensive, rush to buy, the price is 12, 13, 14, the buyer goes. The stock of potatoes is running low. Who sells them at 12, 13, 14, 15? The same MM who buys at 10-11, he provides liquidity, that is, when the sellers have run out of potatoes, he discounts his, the volume goes up. И? Then what? Price collapses. So much for love.)
MM has to be on 2 sides at the same time. And the potato market is not really relevant here. Only the sellers are physically present at the potato market. And their bids are displayed on the counter. No one knows the price of the buyers. Until the bidding starts. But it already looks like an auction.
From your example - MM must have had 2 bids present - to sell at 10 and to buy at 9!!! MM is not obliged to buy or sell at any point of time neither from himself nor from the other same MM who placed a limit bid! It makes sense to do it if, as some people think, you need to move the price. But that's another story. We do this with other people.)
The price will go in any direction only after the real seller/buyer comes to the market.
P.S. This is not a bag (with potatoes)
Zogman, I can feel that you have never traded in a simple bazaar)))
So let's imagine a bazaar, a bunch of potato sellers, they all have a price of about a tenner per kilo, they are expensive, very expensive, there are no buyers, and there is silence.
And now imagine that there is a market maker. Hemust act as a counterparty to the transaction if the other party is absent. And he buys ten roubles from everyone who wants to sell. Where does that lead to? Price rises to 11. What happens next? People, seeing that tomorrow it might be even more expensive, rush to buy, the price is 12, 13, 14, the buyer goes. The stock of potatoes is running low. Who sells them for 12, 13, 14, 15? The same MM who buys at 10-11, he has liquidity, that is, when the sellers run out of potatoes, he discounts his, the volume goes up. И? Then what? Price collapses. So much for love.)
key point "the price goes up to 11" - why ? the price was 10 , it can also go down to 9 - mm will be at a loss ....
and by your logic if it was 9 then it will become 8 and then 7 ....
Trading on the street, I asked a question on the forum about how the exchanger works - no one can deny it either, but everyone is twisting their thumbs and it is obvious to them ...
strange,
I do not understand how a simple Moscow-based exchanger works (the algorithm by steps - what spread to put, where to overlap a lot of options - I wrote in detail).
- i do not understand - can you tell me about it or is it a super secret knowledge?
the exchanger is Forex in miniature - he is a liquidity provider for us ordinary people ...
i did not read the string carefully, it becomes clearer after a second reading
Sounds logical - is the man sells for 10 - no one buys - we think well, maybe lower the price,
But then someone comes and starts buying - a racket - everyone starts thinking that they may run out of potatoes and I won't have enough - they run to buy,
demand comes in, the price goes up.
- It's kind of logical, thanks to the strang once again,
mm has nothing to do with it - just absolutely, but it's probably useful for understanding the market...
Shit!!!
MM has to be on 2 sides at the same time. And the potato market is not really relevant here. Only sellers are physically present in the potato market. And their bids are displayed on the counter. No one knows the price of the buyers. Until the bidding starts. But it already looks like an auction.
From your example - MM must have had 2 bids present - to sell at 10 and to buy at 9!!! MM is not obliged to buy or sell at any point of time neither from himself nor from the other same MM who placed a limit bid! It makes sense to do it if, as some people think, you need to move the price. But that's another story. We do this with other people.)
The price will go in any direction only after the real seller/buyer comes to the market.
Z.I. This is not a bag (with potatoes)
Danila,
uh, that's not really the point here,
But the stranger's probably making a point:
Sounds logical - a guy sells for 10 - no one buys - we think maybe he'll lower the price,
But then someone comes and starts buying - a racket - everyone starts thinking that they may run out of potatoes and I won't have enough - they run to buy,
demand comes in, the price goes up.
We just need to somehow tie it to volumes - maybe that's how it works.
At the first stage, when someone bought for 10, the volumes are low,
and then people rush in and the volumes go up,
or not...
Strange seems to think differently
Maybe buying at 10 - high volume - and then the crowds rushed in and the crowds are small - their volumes are low