4 ms·
> it's important that the market has all the information. I'll be honest with you: when I read this my first response was "what does this even mean? What is "t
by vanderZwan 9y ago
> it's important that the market has all the information.
I'll be honest with you: when I read this my first response was "what does this even mean? What is "the market" and how does it "have information"?" I guess the sentences preceding it are supposed to explain the structure that the market has built up to automagically capture this information, but I don't quite follow.
I'm not criticising your comments, I'm very grateful that you are trying to explain how this works and the logic behind it, but so far it's black-box abstractions all the way down.
- Retric 9y agoSuppose you have: A current price aka price at last trade of 10$ and nobody willing to sell for less than 10$ and nobody willing to buy for more than 9.99$. A new seller shows up, if they are willing to wait they might get more than 9.99$ or they can accept 9.99$. Or a new buyer shows up they can buy for 10$ or wait for a lower price. Now, without effort people can just look at the history of trades and see the price rise or fall. This is independent of whatever reason that causes more people to suddenly want to buy or sell, just the fact that people are buying or selling in it's self moves the price.