What is PRICE? - page 5

 

The market is a discrete process of entry, cancellation and execution.

Price (and spread) are the output numbers of some algorithm (filter, formula). The inputs are the stack of bids.

The question is what kind of algorithms are there?

 
sak120:

The market is a discrete process of entry, cancellation and execution.

Price (and spread) are the output numbers of some algorithm (filter, formula). The inputs are the stack of bids.

The question is what kind of algorithms are there?


I get the idea that Forex is not a market at all, because market laws do not apply here. In a real market, when you sell a product at a low price, you sell a lot, but the profit will be less, i.e. there is a first break-even point. An attempt to increase the price leads to a decrease in sales and the profit made is only enough to cover costs and this second break-even point. between these two prices there is an optimum selling price, which provides maximum profit. Do any of these laws hold in Forex or other stock markets? Of course not. Here any amount of goods can be sold at any price, which contradicts the basic law of the market. Forex, as a child of the monopoly era, cannot but bear the imprint of its time. The seeming absolute liquidity of the goods, which you do not meet in the market conditions, is realized here. Therefore, we must first find out whether this is a market at all, and what laws of pricing should work here, and if there are no laws, then it is lawlessness, the market should be governed by the laws of supply and demand, which do not exist on the market. So I propose to invent a new forex with the signs of a real market, where it will be more interesting to trade. Let's try to formulate together the basic rules of the new market, as close to the real market as possible, the laws of formation of profit in which I have recently formulated depending on the purchase and sale price of goods, fixed and variable costs, and this pattern, true for the real market, will also operate within the new forex. I will try to start such a branch in order to thoroughly weigh everything and to bring the future market as close as possible to the present market.
 
yosuf:

The market must be governed by the laws of supply and demand, which do not exist here

1. We are talking about any financial instrument, forex undoubtedly stands out, but not as much.

2. Прокомментирую только одну вашу фразу: https://ru.wikipedia.org/wiki/%D0%AF%D0%BC%D0%B0%D0%B9%D1%81%D0%BA%D0%B0%D1%8F_%D0%BA%D0%BE%D0%BD%D1%84%D0%B5%D1%80%D0%B5%D0%BD%D1%86%D0%B8%D1%8F

Especially carefully read the phrase

  • Freely floating exchange rates are established: they are quoted in the foreign exchange market, based on supply and demand;
 
Trolls:

and you read carefully ... you want to see an answer like ... I'm the sys admin of DickFX we do so and so, we take the price from there ***** for 50 quid a month, and we give it to you. with a delay of 5 seconds, we take the best asc and the best bid ...

Is that the answer you're looking for? No one will give it to you. Because it's a trade secret where the brokerage company gets quotes and what filters it uses. I recommend you to find the MT server settings. and see what it can do. Then network and think, I own this server...what am I going to do....a) with the one who leaks....b) with the one who earns (prying into my pocket)....



For those who earn (goes into my pocket) - spread (within certain limits) + there is a certain increase in the frequency of coming data on the price (quotes) and this until the amount of applications and their volume is greater than the amount of applications and their volume of those who flush, and then the following.

For the ones who lose (make profit) (the kitchens = most DTs who do not enter the general market) may not do anything, and may in some cases temporarily narrow the spread + may reduce the speed of coming data on the price (quotes).

Am I right or am I missing something? (I do not mean the refusal to pay cash because of non-market quotes - that's another minus.)

 
If so, perhaps the analysis of dealers from this side (the intensity of flow and spread change analysis (of course multicurrency analysis)) will give more accurate signals for entry and exit (up to certain volumes - until my volume in a trade is greater than the volume of counterbalanced trades)
 
trol222:

Am I right or am I missing something else?

You want easy money? Then quit Forex and go make money as a miner - everything is clear and simple there: "Take more, throw further".
 
mansunny:

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.

Quite right, the price is the last deal, or last. But there is also supply and demand, bid\ask. You have to understand that these are completely different types of prices. Moreover, bid/ask has many different values at the same time, the so called "pile".


So, MT4 shows you the bid\ask that is determined by the broker, and this is the price to you. Whether it has anything to do with forex, huge volumes, lots of brokers, etc. is up to you. - it's up to you to decide.

 
yosuf:

I get the idea that Forex is not a market at all, because market laws do not apply here. In a real market, when you sell a product at a low price, you sell a lot, but the profit will be less, i.e. there is a first break-even point. An attempt to increase the price leads to a decrease in sales and the profit made is only enough to cover costs and this second break-even point. between these two prices there is an optimum selling price, which provides maximum profit. Do any of these laws hold in Forex or other stock markets? Of course not. Here any amount of goods can be sold at any price, which contradicts the basic law of the market. Forex, as a child of the monopoly era, cannot but bear the imprint of its time. The seeming absolute liquidity of the goods, which you do not meet in the market conditions, is realized here. Therefore, we must first find out whether this is a market at all, and what laws of pricing should work here, and if there are no laws, then it is lawlessness, the market should be governed by the laws of supply and demand, which do not exist on the market. So I propose to invent a new forex with the signs of a real market, where it will be more interesting to trade. Let's try to formulate together the basic rules of the new market, as close to the real market as possible, the laws of formation of profit in which I have recently formulated depending on the purchase and sale price of goods, fixed and variable costs, and this pattern, true for the real market, will also operate within the new forex. I will try to start such a branch in order to thoroughly weigh everything and to bring the future market as close as possible to the present market.
Just because the market has a huge liquidity does not mean that it is not a market. The fact that you can agree to take goods at "any price" - it is the same at the vegetable market. In general, the point of the claim is not clear.
 
HideYourRichess:

Exactly, the price is the last deal, or last. But there is still supply and demand, bid\ask. You have to understand that these are completely different types of prices. Moreover, bid/ask has many different values at the same time, the so-called slop.


So, MT4 shows you the bid\ask that is determined by the broker, and this is the price to you. Whether it has anything to do with forex, huge volumes, lots of brokers, etc. is up to you. - it's up to you to decide.

Perhaps options which give rights without obligations are strongly influenced?

Options are contracts which give the right, but not the obligation, to buy or sell a certain asset at a certain price at a certain time. ...

Is it possible, or rather, is the right being used to destabilise the market?

 
yosuf:

Options which give rights without obligations may be strongly influenced?

Options are contracts which give the right, but not the obligation, to buy or sell a certain asset at a certain price at a certain time. ...

Can, or rather, are these rights used to destabilise the market?

The highlighted is an incomplete definition of "option": If a trader buys a call option, he is buying the right (but not the obligation) to buy the asset at a fixed price in the future. That is, he may not exercise that right. The one who sells such option - sells the obligation. That is, if the one who bought the option decides to exercise his right, then the one who sold the option must satisfy that right. Similarly, for put options, it is the right (for the buyer) and the obligation (for the seller) to sell at a fixed price in the future.
Reason: