Why does the price move? The answer is here!!! - page 3

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orders do not move. Simply, if you place a buy or sell order, then as soon as the price reaches this level, the supply or demand (respectively) increases. Whether or not your order is triggered depends on the availability of the currency in the market (but because Forex is a highly liquid market, this happens in seconds).
To understand the supply and demand mechanism, work on illiquid markets (metals, for example). Where the tick may not be for minutes or tens of minutes.
 
klerk:
The point is that the tick does not occur when a transaction is made, but when a buy or sell request is made.

Okay. Even if there is a buy or sell request. But as I understand it, the broker (bank or fund or whoever) is not buying my lot, but is looking for a counterparty. And therefore will find the same opposite request. And everything repeats with a quote exactly the opposite. Right?
 
If we are one-on-one, as in the desert anecdote. And if there are a hundred people selling and a thousand people buying in the market, how will the price go?
 
klerk:
If we are one-on-one, as in the desert anecdote. And if there are a hundred people selling and a thousand people buying in the market, how will the price go?

That's what I want to understand , and the second question is where...
And secondly - if there are a hundred, then anyway, the broker will not at a disadvantage to himself to fulfill my request. It turns out in any case, as in the anecdote. ...
 
it will go up tenfold as there are ten times as many buyers.
 
or less, it depends on the supply and demand curve. There is such a thing as the elasticity of demand.
 
klerk:
it will go up tenfold as there are ten times as many buyers.

So who will sell, (extinguish purchases) if there are ten times less of them?
 
sergeev:
Ok. What then is the mechanism of price movement after the order is triggered?
Thank you in advance for the normal answer.


The same as before the trigger. Most likely, what you are referring to is not moving the price. The so-called "order triggering" occurs at the negotiated price between the buyer and the seller, and the price has either already moved or stayed in place. Once the order is 'triggered', we see the price position fixed in the trade.

But sometimes it happens just after the mutual agreement of requests at the current price that there is no more buyers willing to sell at this very current price, for instance. The next, less likely event, but also occurring when there are no sellers at the current price, is the presence of buyers at a higher price than the current one. That's where they come in. The most cooperative sellers who are willing to sell just a pip above the current price are matched by impatient buyers who are willing to buy just a pip above the current price. A warrant is triggered! A new price is set. Amen.

P.S. You are acting as a provocateur.

 
and the banks' behaviour is as follows: they know (can learn) that at the price of 1.2 there are many stop orders, i.e. when this price is reached, demand for the currency will increase sharply, but there are 5 points short of this price. The bank (or several banks) start to pump up demand, sending buy requests to push the price up, but at the price of 1.3 they put a big sell order, i.e. already supply exceeds demand and the price goes down.
 
and when the stops of already triggered stop orders are triggered, the supply increases even more and the price falls even more.
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