What is PRICE?
This is a fundamental question. Actually, this is a good place to start all the discussions about Expert Advisors, scripts, trading systems, etc. But we are not used to getting into details and we just eat the price which the trading terminal gives us. We are not interested in WHO sends this figure and on what principles it is filled out. Without solving this issue, all trading systems look like buildings built on sand.
"The Market Price is the price of the last transaction made".
This is only true for highly liquid assets and not at the opening trade.
It is more correct to look at the market rate and from it draw conclusions about the price at that moment.
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I have always wondered how the brokerage companies calculate the current bid and spread for an instrument based on the market? For example for CFDs?
Take FOREX. It's hard to make sense of it at all. For one thing, the turnover is enormous. On the other hand there are a lot of brokers. On the other hand, there are big banks and states that will influence the price. Or maybe even the "hackers" of the broker who send their "own" price to the terminal (there were cases).
filters are in every brokerage house...
https://www.mql5.com/ru/forum/102066/page9#19442
Renat's posts
And a related question is also very interesting - how do you filter out market snot with a tumblr? The Bloomberg information system filters(s) through the volume of trades on the MICEX, if there is insufficient volume, the trade is not counted.
And a related question is also very interesting - how can market snot be filtered out with the tumblr? The Bloomberg information system filters(s) through transaction volumes on the MICEX, if there is insufficient volume, the transaction is not counted.
First tell me where in the betting market the snot is, and in general, what do you mean by that?
For example: a sharp widening of the betting spread and a trade is made (usually with a minimum volume at the extremum), and then everything instantly rolls back.
Any DT. can widen the spread any way it wants. instantly. and no one tells it. any price it wants...volumes if you use MT will not be noticed...
what is the question not clear?
But a sharp widening of spread at a broker you can always check, there is a history of the exchange and it is unchangeable, one for all...
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This is a fundamental question. Actually, this is a good place to start all the discussions about Expert Advisors, scripts, trading systems, etc. But we are not used to getting into details and we just eat the price which the trading terminal gives us. We are not interested in WHO sends this figure and on what principles it is filled out. Without solving this issue, all trading systems look like buildings built on sand.
So let's get to the fundamentals. The question is "What is the price". Or "Where do the numbers in the terminal come from". If we talk about the MICEX, there is a clear definition "The market price is the price of the last made transaction". Moreover, this definition looks plausible. There are stock charts. You can see how the numbers are running and it really looks like (especially on markets with low turnover) that this is the case.
Take FOREX. Here it is difficult to give any sense at all. For one thing, the turnover is enormous. On the other side there are a lot of brokers. On the other side there are large banks and governments that will influence the price. Or maybe even the "hackers" of the broker who send their "own" price to the terminal (there were some cases). So how is the price formed in the forex market? Colleagues, share your experiences.