price is up/down?

suchiangsuchiang Posts: 63
why is price is drop down quickly and up quickly ..any one explain about this?

Comments

  • lotzofbotzlotzofbotz ✭✭✭✭ Posts: 1,552 ✭✭✭✭
    edited April 2015
    because there are larger orders being executed at those prices. Often what you don't see is market makers making trades to each other at specific prices which can cause odd moves that often can freak you out but they are not uncommon. The banks and market makers have inventory and make deals so if there is not alot of volume between levels they will execute these orders at the prices they make deals on and you will be like WTF! haha

    One of the rules of trading is - "Learn to expect the unexpected."
  • OkaneOkane admin Posts: 1,279 admin
    You should always view the market as "live".
    It is constantly being affected by sellers and buyers in the market.
    How much they sell/buy is what creates the moves. Rapid sudden moves usually occur when there
    is fundamentals. For example, during high impact news
    releases that are good for an asset like, a currency.
    But sudden huge changes in volume can also occur when, as botz put it;
    market makers make huge deals. For example, a big bank buying or selling
    the Euro will affect EUR/USD and other EUR pairs.
  • ArchymayArchymay Posts: 5
    It is difficult to trade when any news quickly can turn over the market.
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