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Selling requires a buyer. Seller can set whatever price they like, unless the buyer is ready to pay for it, its really not worth much. In the same way if all t
by kamaal 8y ago
Selling requires a buyer. Seller can set whatever price they like, unless the buyer is ready to pay for it, its really not worth much.
In the same way if all the buyer wants to pay is 50% of what the seller is quoting, and there are no other buyers around or they too want it for a 50% discount, 50% discounted price is what the price is.
- klodolph 8y agoThis is ridiculous at face value. Selling requires a buyer, but it is also true that buying requires a seller! Neither the seller nor the buyer has any kind of special power to affect market value that the other party lacks, in some symmetrical way. This should be pretty obvious if you're thinking about currency transactions (which we are) because in currency transactions neither party can really be identified as a "buyer" or "seller". Am I selling BTC? Or am I buying USD? Either statement is equally true. > In the same way if all the buyer wants to pay is 50% of what the seller is quoting, and there are no other buyers around or they too want it for a 50% discount, 50% discounted price is what the price is. Let's say I want to sell for $10 but you're the only "buyer" and you only want to pay $5. You are saying that the actual price is $5... this is not true. There is no actual price, because there is no transaction. I am not a seller, because I haven't sold anything (I've only offered to sell). You're not a buyer, because you haven't bought anything (you've only offered to buy). The "bid price" is $5 and the "ask price" is $10. The "actual price" does not exist until there is an actual transaction.