/biz/ - Business & Finance

>>52982532
Nigga failed Econ 101

If nobody at all is buying, (going "no bid") it literally goes to zero. If literally nobody is selling, it may as well cost infinity because you can't buy it.
The market price ends up being right above the price that anyone is willing to buy at and right below where anyone is willing to sell. Maybe search for a "order book" animation to help you understand.

>>52982532
>what are exchanges

>>52982619
>If nobody at all is buying
Then nobody at all is making sales either.

>>52982634
jew scams to keep the price under control?

>>52982532
>OP exists

>>52982532

Market price doesn’t move price, retard

>>52982532
Depends on the amount being offered for sale vs the amount people want to buy.

>>52982619
In other words, say bitcoin is exactly 17,000 at this moment. That means the the lowest anyone would be willing to sell at would be 17,000.01, and the highest anyone would be willing to buy at would be 16,999.99. If you put in a market buy order atthat moment, you'll be buying the bitcoin for sale at 17,000.01, and if you out in a market sell order you'll sell to the guy who's offering 16,999.99.

>>52982532
you need to learn how the order book works. Market and Limit orders. Market buys limit sells.
Watch this vid, maybe theres better but this explains it well
https://www.youtube.com/watch?v=JjVx8OSv9mw

>>52982532
Wym? You just press sell or buy and you sell or buy. It’s that easy dumbass

>>52982546
>>52982532
>>52982712
>>52982688
>>52982651


Okay. it's kinda crazy to think that you guys trade without knowing the mechanics of exchanges, brokerages, and market makers.

asks, bids, spreads, market making fees, resting orders, market orders, orderbook, depth of market, liquidity, stop losses(and/or liquidation mechanics), liquidity providers, etc.

Like, you should know how some of these things work before ever looking at a chart.

start by googling how orderbooks work

sorry. follow up post. it's going to be so illuminating for you when you learn how orderbooks work and how to use them for more info.

it will be like having x-ray vision. you can literally see every bodies hand. this coupled with knowledge of liquidity bands will make you a derivatives trading monster.

well, not right now. the orderbooks are thin as fuck. it's like 2 algos are sliding quarters across a table, with an occasional scam wicks stopping out high lev traders.

>>52982532
Anon you're dumb as fuck
>>52982789
This anon kind of has the right idea....
The defi markets work different than other markets. Stocks, CEXs, etc. Use an order book model that also utilizes market makers who help facilitate trades when there is no volume on the books. Defi uses a liquidity pool to facilitate trades, the buyer and seller is always the LP. Go learn about the mechanics of the markets are made. Use that language, we call it making markets (the matching of orders to buys and sellers). So many anons have jumped on this board recently that have 0 knowledge about the vocab of investing, this leads to people making stupid as fuck errors that cause catastrophic loss...I mean I find it bullish that you guys are about to start giving me your money, but you should honestly go learn the basics of investing before you do anything else, start with the vocab then move to mechanics, and finally strategy.

>>52982851
Yes, that's the complicated answer. But the simplest explanation is simply supply and demand. More willing sellers than buyers equals lower prices. More willing buyers than sellers equals higher prices. You don't have to go into the mechanics of exchanges to understand why prices go up and down.

>>52982644
Did he really to add “willing to” for your tiny esl brain to understand

>>52982990
I prefer that people use the correct words to convey their intended message. Thanks.

>>52982962>>52982532
>>52982962

>he really to add “willing to” for your tiny


op wants to know what makes the price on an exchange go up. supply and demand, i'd argue is a bit to simple. the mechanics of the orderbook aren't that crazy complex.

you have people that want to buy at a certain price that isn't the current market price. They place a thing called a limit order or resting order. The market maker(likely the exchange, unless you are using dydx or some other automated market maker system) will match Market orders with resting orders. in order for either type of order to execute, you need market orders and resting orders(limit orders).

you got a row of stalls with people that want to sell at 17k and you have some people that want to buy at the MARKET price. after there are no more sellers at 17k, because the market buyers bought the supply, market price goes to 17.1k to try and match market buyers with new sellers.

but for real guys. Trading is PvP. you need a party and a counter party. a winner and a loser. especially in derivatives markets.

>>52982532
the absolute state of /biz/

>>52983601
this desu.

this is tradinglite. this charting appprints the orderbook on the chart, so you can see as a heatmap where the resting orders are. I use tis along with some shit tier TA to scalp price.

how am I using it?

I see a bunch or orders, i know price moves slowly through this general area. I feel more comfortable with entries when I see a big old padding of orders that well prevent a wick to stop me out.

how i use it when i'm feeling extra conspiratorial. Market makers collect fees from market buys, so they want to match as much buyers and sellers as possible. so resting orders also act a bit like a magnet for price. Ignore this part if you believe exchanges and brokers are honest and have no financial incentive to manipulate price.

you can use sell walls and buy walls as support and resistance. but you don't need a fancy charting app to do that. just use some volume profile indicastor like vpvr

>>52982532
>these people are real and browsing /biz/ - Business and Finance at this very moment

>>52983479
ngmi