Abstract thinking - page 3
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Depends on the ratio of stakes
People in line are moving the price.
It's just that each person contributes to the price shift, which depends on the volume of their transaction.
For example: You and I are at the head of the queue. You are selling and I am buying. I want to buy 1000 apples for 20 rubles/kg, but you only have 200. The person behind you has another 800, but at 30 rubles/kg. I buy 200 apples from you for 20 and another 800 from the person behind you for 30. After that, the price of apples rose to 30 rubles per kg, thanks to me. In parallel, we made a bet with you. I have bet my apples (which I need not for food, but for resale) on the fact that people after me in line will buy large quantities of apples, regardless of the price, and therefore the price will rise, and you believe that people will not buy many apples, and therefore their quantity will be so large that the price will go down.
We step aside and wait to see what other people in line will do. At a certain point, I will decide to sell my apples, taking up my place in the queue again, but the price at that point will either meet my hopes, or I will sell the apples at a loss.
NOOOOOOOOOOOOO!
Hey, man!
PEOPLE IN LINE DON'T BUY OR SELL ANYTHING - THEY BID!
When there are real transactions in the market, there is price momentum, but when there are bets on price momentum, that's not it.
It is already a derivatives market.
There are no stakes in the problem statement - equal.
There is also no division into active-passive side, which is important.
Ah, well, there will be theoretical friction anyway, it's not interesting.
NOOOOOOOOOOO!
Hey, man!
PEOPLE IN LINE DON'T BUY OR SELL ANYTHING - THEY PLACE THEIR BETS!
Combine betting and bargaining in your understanding. Selling, buying and commodity are on the surface. In essence - market trading is betting on the price movement, which is moved by the people making those bets themselves.
Each according to his finances and his belief in his prediction.
There is no division into active-passive side in the problem statement either, which is important.
Ah, well, it's going to be a theoretical tussle anyway, not interesting.
Combine betting and dealing in your understanding. Selling and buying like a commodity is on the surface. Basically, market trading is betting on the price movement, which is moved by the people making that bet. Each according to his finances and belief in his prediction.
No.
A bet and a deal are two different things.
A deal is a reality. A deal forms the price of each moment in time. A deal is a futures market.
And a bet is futures and options.
The futures market will exist by itself, but the derivatives market can only function if there is a futures market - there is nothing to bet on, no price.
No.
A bet and a deal are two different things.
A deal is a reality. A deal forms the price of each moment in time. A deal is a futures market.
And a bid is futures and options.
The futures market will exist on its own, but the derivatives market can only function if there is a futures market - there is nothing to bet on, no price.
I'm not saying it's one concept.
I am saying that a transaction in the market is a way of betting.
People in line move the price.
Simply, each person makes his own contribution to the price shift, which depends on the volume of his transaction.
For example: You and I are at the head of the queue. You sell and I buy. I want to buy 1000 apples for 20 roubles/kg, but you only have 200. The person behind you has another 800, but at 30 rubles/kg. I buy 200 apples from you for 20 and another 800 from the person behind you for 30. After that, the price of apples rose to 30 rubles per kg, thanks to me. In parallel, we made a bet with you. I have bet my apples (which I need not for food, but for resale) on the fact that people after me in line will buy large quantities of apples, regardless of price, and therefore the price will rise, and you believe that people will not buy many apples, and therefore their quantity will be so large that the price will go down.
We step aside and wait to see what other people in line will do. At a certain point, I will decide to sell my apples, taking up my place in the queue again, but the price at that point will either meet my hopes, or I will sell the apples at a loss.
Don't forget that there is also a third party who, the moment you widen the spread from 20 to 30, hoping that the price will go even higher,
this person will push his product (apples) for 21 rubles (inside environment you know who I am) like this, and stand aside.
Active and passive side???