I'm interested in your opinion. What will happen? - page 2
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What would happen if, for example, all the traders in the world went long on the Eurobucksat the same time?
Would the price explode upwards and fly off into space?
The market postulates that all buyers become sellers as soon as they buy, regardless of the buyers' true intentions, even if they never intend to sell at all and the market will counter them as sellers, so the price should, in theory, collapse. Perhaps the market itself will collapse due to a violation of its principles.
Ivan Vagin, specifically quoted for you and highlighted in red.
For those who don't understand, let me explain.
In order for everyone to get into a long at the same time, let's say possessing half of the planet's money.(buyers)
There must be an agreement by the holders of the other half of the planet's money to sell that other half at the market price, so
This is out of the question at the same time, it may be a more or less short period, when people start buying or selling, the protection mechanism of the exchange involves the closure of trading if intraday quotes deviate from the specified percentage
If you want to see what happens, this is what happens when there are more sellers than buyers, this picture does not happen at higher timeframes for the above mentioned reasons (there are exceptions)
Screenshots from MetaTrader platform
AUDUSD, M1, 2016.01.07
MetaQuotes Software Corp, MetaTrader 5, Demo
In its pure form ALL cannot get into a long, the ratio of sellers to buyers (by position volume) at any given time in the market is +/- 50/50
If you want to see what happens, this is what happens when there are more sellers than buyers
Thank you for your comment.
I am interested in the price structure itself. Let us assume that on the one hand you and MrYousufkhodja Sultonov are right. On the other hand, if there is "demand" because everyone suddenly started buying, why not sell at a higher price?
What would happen if, for example, all the traders in the world went long on the Eurobucks at the same time?
Would the price explode upwards and fly off into space?
Thank you for your comment.
I am interested in the price structure itself. Let us assume that on the one hand you and MrYousufkhodja Sultonov are correct. On the other hand, if there is "demand" because everyone suddenly began to buy, why not sell at a higher price?
There will not be anyone left to whom it can be sold, all into the long haul.
Demand presupposes that there are sellers left
Hence the conclusion if everyone goes long, there will be nothing/no one to buy = the price will freeze the moment everyone decides to buy
Wait... what about countries' foreign exchange reserves and currency reserve fund regulators?
I was asking purely about traders initially (I did not clarify this point, sorry)..,
I mean, can we move the market or can we only follow the price?
There is no consensus on the definitions of "buyer" and "seller" in forex.
If we BUY Euros, we sell dollars at the same time.
Who are we then :-)
stop... what about countries' foreign exchange reserves and monetary reserve fund regulators?
I was asking about traders (sorry, I did not clarify this point)..,
I mean, can we move the market or can we only follow the price?
By definition, ALL is long, why holders of assets are excluded from the notion of ALL?
The market can be moved, you just need large amounts of money, Soros is an excellent proof of that, any candle on the clock, is the handiwork of some central bank or large investment fund