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Thread: Forex Market Structure - Q/A

  1. #1
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    Q1.) What exactly does it mean if the price goes up or down? - In normal world, price is generally based on quantity. If there's sufficient corn, then the price goes down because everyone has got a lot of corn and they would like to eliminate it so that they have to reduce the price. But in Foreign Exchange market isn't based on quantity. If I wish to buy this kind of big size which will move 1 pip in a minute, somebody must sell it to me personally. If this happens, market cannot proceed in any way, right? If for every buyer there's a seller, then how the market moves?

    A1.) The quantity and size of orders in the specific level - If there's a large SELL order at specific price and there's not enough LONG orders to finish the large SELL order, then the price drops at lower price. If there's sufficient LONG orders at this lower price to finish the SELL order, the price will discontinue. If there's not enough LONG orders, the price will fall again. The price will fall as long as the SELL order will be wholly covered by LONG orders.

    --

    Q2.) What is spread and how it´s generated?

    A1.) Please write your response.

  2. #2
    22
    Guest
    Quote Originally Posted by ;
    Of all of the threads in the conversation region, THIS gets moved to the newcomer section. Unbef******lievable Great question EQ,
    When it occurred, I was wondering if the moderator who moved it, is able to answer my question. hehe

  3. #3
    Quote Originally Posted by ;
    Hello guys, I´ve got any questions concerning forex market structure. Let´s just start with: 1.) What does it imply if the price goes down or up? - In normal world, price is generally based on amount. When there's sufficient corn, the price goes down since everybody has got a lot of corn and they would like to eliminate it so that they must reduce the price. However, in forex market isn't based on amount. If I want to buy this kind of big size which will move 1 pip at a minute, somebody must sell it to me personally. If this happens, market can't move in any way, correct? ...
    Because every pair is connected. For example if you buy EUR/USD you're buying the EURO but purchasing the Dollar, which is reflected on USD/CHF, the Euro's sister pair, and if everybody is buying EUR/USD, then folks are selling the dollar hence a fall on USD/CHF. Perhaps someone can clarify this better.

  4. #4
    22
    Guest
    Quote Originally Posted by ;
    quote Because every pair is connected. For example if you buy EUR/USD you're buying the EURO but purchasing the Dollar, and that can be represented on USD/CHF, the Euro's sister pair, and when everyone is buying EUR/USD, then folks are selling the dollar consequently a drop on USD/CHF. Maybe someone can clarify this better.
    Thank you very much for taking your time to answer, but I´m afraid it doesn´t feel at all. Correlation is a result of the move. You wouldn´t possess correlation in the event the market doesn´t move a 1 pip, right? So, my question is what is behind this 1 pip motion.

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  6. #6
    I guess that this thread defeats the Found Holy grail threads with a yard..you have already answered your question, kind of and do inspection the other replies. Find it tough to believe that such basic queries become posted inforexintuitivewhen just a simple search online would have helped..smh

  7. #7
    22
    Guest
    Quote Originally Posted by ;
    This thread might be of interest for you. Https://forexintuitive.com/discussio...-industry.html
    Thank you very much Steve, but I´m not certain if I know DarkStar properly. Here my thought:

    So, The price of let´s say EURUSD went down 1 pip out of 1.3254 into 1.4353. What happened? In order for the price to fall 1 pip, there should have been someone who offered EURUSD in an amount that was too big to be full of actual long orders at that price. So, the SELL order at 1.3254 consumed all the buy orders at 1.3254 and still wasn´t entirely filled so the price had to fall 1 pip reduced, where were other BUY orders. When there is still not enough BUY orders at 1.3254, then the price will fall a second pip for more BUY orders.

    Can I correct please?

  8. #8
    22
    Guest
    Quote Originally Posted by ;
    I guess this thread surpasses the Seen Holy grail threads with a yard..you have already answered your own query, type of and do review the other replies. Find it tough to believe that such basic questions become posted inforexintuitivewhen only a simple search online would have helped..smh
    Forexnuts, I don´t even know if you´ve tried to done this search, but you'd be surprised that this basics are very hard to discover. Everybody describes just the generally knows matters. Just try to discover spread is made. Everybody writes that it's difference between bid and ask price, but nobody writes it´s created. I believe that without DarkStar´s post you'd have quite large difficulties to discover the same advice that he shared.

    Anyway, thank you for your answer and I hope this thread will grow more interesting for you as we will discuss more details.
    Cheers, EQ.

  9. #9
    Read from the beginning of this thread focusing on FTI's post's. https://forexintuitive.com/discussio...-industry.html

  10. #10
    22
    Guest
    Quote Originally Posted by ;
    Read in the beginning of the thread focusing on FTI's post. Https://forexintuitive.com/discussio...llective2.html
    Thanks a lot Steve, but I didn´t even find the information that I need in that thread.

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