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So what exactly moves the market again?

  #9 (permalink)

Brisbane, Australia
Posts: 95 since Mar 2018
Thanks: 72 given, 26 received

xplorer View Post
Check this post out.

The pic posted in there shows 10 contracts on the inside offer.

Assuming nobody is going to add any more contracts on the offer at that level, buying 11 contracts at market at that point in time would cause price to tick up.

It's a simplification but that's generally the mechanism that moves price.

So you are saying that the price moves up and down a tick based on the bids/offers being "bought out" or "sold out" with no more pending orders among the depth? - if buyers buy out all the offers it will move up, and if sellers sell out to all the bids it will move down.. ?

"Markets move up when their are no sellers left at the ask price.

Markets move down when their are no buyers left at the bid price." - So that is true?

"If there were all of a sudden market orders for 101 buyers and 100 sellers the market would move up a tick, right?" - Wrong. right? it would depend on the market depth.

Last edited by Revan; May 12th, 2018 at 07:13 AM.
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