What is supply and demand in trading and how to understand it?

[BCRypto]

Supply and demand are crucial concepts in economics that have a significant impact on financial markets, including the Forex market. In trading, they determine the price of a security or currency pair.

Supply refers to the amount of an asset available for sale in the market at a given price. An increase in supply leads to a decrease in price, while a decrease in supply leads to an increase in price.

Demand refers to the amount of an asset investors are willing to buy at a given price. An increase in demand leads to an increase in price, while a decrease in demand leads to a decrease in price.

To comprehend supply and demand in trading, traders should consider various market indicators, including economic data releases, central bank policies, political events, market sentiment, and chart patterns. By analyzing these indicators and their impact on supply and demand, traders can make informed decisions while entering and exiting trades.

It is crucial to note that the market is complex, and supply and demand are just two of many factors that can impact price action. As a result, it is essential to continuously monitor the market and adjust your approach as necessary.

 

[RogerMontoyo]

looks like a copypaste, and probably is. Boring as fuck.

I will do you a favour and make a summary.

There's not enough products for everyone that wanna buy? Price will go up.

There's too many products and those aren't selling too fast? Price will go down. (yeah it's like walmart discounts)