What is this all about?! - page 3

 
Avals:

At any one time, the volume of buying equals the volume of selling. Therefore, the market is not driven by the ratio of buyers and sellers, but by how they open/close and at what prices. If sellers are in a hurry and sell urgently through the market, they will move the price down.


You have just completely destroyed the very foundation of the market economy - the law of supply and demand! Ruined it at the root. And the main problem - all the Nobel prizes in economics are based on this law, looks like you'll have to take them away....

What if the vendors are not in much of a hurry? What if they open slowly downwards? What if they open slowly downwards?

 
Demi:


You've just completely destroyed the very foundation of the market economy - the law of supply and demand! You've completely ruined it. And the main problem - all the Nobel Prizes in economics are based on this law, looks like you'll have to take them away....

I am))

Demi:


What if the sellers aren't in much of a hurry? What if they open slowly downwards? What if they open slowly downwards?

Well, I wrote more about it here https://www.mql5.com/ru/forum/134596
 
OnGoing:

Of course, if liquidity allows, i.e. there are enough buyers for a billion at the moment.)

But the author is asking a purely hypothetical question, just to understand the mechanism)

i'm right about liquidity, but i suspect that in electronic trading the liquidity is virtual )))

I mean whoever bought a billion from you, he has to sell you back the same billion at the current rate at the close of the transaction, and it is un likely that the bank will decide to buy that billion from you, at a close of the transaction at a price that is unprofitable for him

 

If he had a billion, he'd have buyers in a hurry. He's got a naked ass.

And everyone would smell it right away.

 
OnGoing:

When you open (to sell), the market collapses downwards. After that, you can be supported by other market participants (the crowd), and then the price will fall even more.

When we have decided to close a position (the whole volume), then, as closing is the opposite transaction from the opening, i.e. in this case, buying, the price will react in the opposite direction by the same modulo value that it did in case of selling.


That is, when I buy the price moves upwards. And when I sell, the price moves down. Right?

And, if I have an open trade up (for example). And I take a take profit (I've got it right), the price moves down...(because I'm selling). And if I grab a stop loss, the price goes up? Is that how it works?

 

If you catch it, it's already happened before.

You are just a squeezed lemon.

 
IgorM:

i am right about liquidity, but i suspect that in electronic bidding the liquidity is virtual ))))

I mean whoever bought a billion from you, he has to sell you back the same billion at the current rate at the close of the transaction, and it is un likely that the bank will decide to buy that billion from you when the transaction closes at an unprofitable price for him

Why, the counterparty will not necessarily be the same. And there probably won't be just one buyer for a billion, but many, i.e. in total they will buy a billion.

Again, if the current market liquidity allows (and the broker allows the position to be opened), then there are sufficient counterparties to make the trade.

 
asimox:


So when I buy, the price moves up. When I sell, the price moves down. Right?

And, if I have a trade open upwards (for example). And I reach take profit (I guessed correctly), the price moves down...(because I'm selling). And if I grab a stop loss, the price goes up? Is it like that?

Exactly.
 
asimox:


So when I buy, the price moves up. When I sell, the price moves down. Right?

And, if I have a trade open upwards (for example). And I reach take profit (I guessed correctly), the price moves down...(because I'm selling). And if I grab a stop loss, the price goes up? Is it like that?


No. Take Profits are limit orders (they create liquidity). Market orders and stop orders move the market (they are in fact executed as market orders and do not differ from them). The liquidity is created by limiters, while the market orders are eating it up).
 
Avals:

No. Take Profits are limit orders (they create liquidity). Market orders and stop orders move the market (they are essentially executed as market orders and do not differ from them). The liquidity is created by limiters, while the market orders are eating it up).
He writes, the moment the take and stop are triggered, i.e. limit and stop orders are transformed into market orders.