The knowledge how the prices move in forex market is very important part of trader’s knowledge simply because of the fact that forex market is actually different to most of other markets and the majority of people are oblivious to this fact.
With stocks, for instance, the price you see on the chart or the quote board are the last price that the stock was physically traded and where a transaction was actually made. The last price two people actually bought and sold with each other so for the price to move or change someone has to physically buy or sell. There has to be an actual transaction, the price can't move without a transaction happening. In other markets it is real buying and selling pressure that moves the price and that's what makes sense and that's what we all think
In forex though it's not like that because the forex market is a bona fide auction market. The prices you see are the prices that someone is willing to buy or sell at. So just think of a normal auction where you may be trying to buy a painting. The prices start low and they gradually go higher and higher because people bid
the painting hasn't been sold the price moves and changes were there without any transa…
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