Grade 2 of 10
How Prices Move
Why price goes up and down: buyers, sellers, big players and the news.
9 lessons · about 25 minutes · Badge: Price Detective
After this grade you can
- Explain supply and demand with a chart
- Know who is on the other side of a trade
- See why price jumps when news comes out
- Tell a busy market from a sleepy one
Lessons
How Prices Move
- 1Supply and demand in market termsExplain how supply and demand turn into price movement on a chart.3 min
- 2Order book and market depthIdentify how bids, asks, and depth shape the next available price.3 min
- 3Market makers versus price takersDistinguish market makers from price takers and explain why both are needed.3 min
- 4Liquidity providers and bank flowExplain how liquidity providers and banks help large trades get filled.3 min
- 5Retail versus institutional order flowDistinguish retail order flow from institutional order flow in practical chart terms.3 min
- 6News as a supply and demand shockExplain how news events can shock supply and demand in real time.3 min
- 7Why buy the rumor, sell the news worksExplain why expectations can move price before news and reverse after confirmation.3 min
- 8HFT and modern market microstructureExplain how high-frequency trading affects spreads, speed, and short-term noise.3 min
- 9Inter-dealer market versus retail tierDistinguish the inter-dealer market from the retail trading tier.3 min
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Demo first. Trading has risk of loss. Education, not financial advice.