UNDERSTANDING CONCEPT SUPPLY & DEMAND
The concept of supply and demand is an important concept in commerce in general. This concept is used by all levels of society and will continue to be used in all types of transactions, whether in forex, stock, or in traditional markets.
Most people understand this intuitively. If there is an item of interest, the buyer is willing to pay a higher price. So also with the seller of course would be more happy if merchandise purchased with high price. Let's know more about this concept.
Where Power Supply & Demand Applies
First, you must understand where the forces of supply and demand apply. It is assumed that supply and demand comes from the market. Actually the market is just a collection of buyers and sellers of a certain goods or services.
The power of supply and demand refers to the behavior of buyers and sellers or referred to as market participants. The buyers do demand in the market, while the seller provides the supply. The types of markets include: forex market, stock market, cattle market, and so forth. These markets have different functions and types of each.
Buyer And Seller
The characteristic of supply and demand is the presence of so many buyers and sellers. In a perfectly competitive market model, none of them can affect individual markets. So, a supplier will not be able to do anything on the market to influence the market even though he has a large capital. Because almost all sellers and buyers in the market are using the same product with the same type, so if there is a seller for example able to raise the price, many of its customers will go elsewhere to get the same goods and certainly cheaper.
Examples of perfect market trading for example the forex market. Buyers and sellers in this market can not affect individual market prices, but can only accept market-determined prices from seller and buyer agreements as a whole.
Balancer Price
As you may know, the market determines the price in the presence of supply and demand that serves as a price counter. If you review in the real market sometimes a lot of monopoly in the market. In addition to monopoly, sometimes there is also oligopoly and competitive monopoly. It does not reflect real justice because it benefits only a few people.
By doing a transaction in the forex market, then you are already doing transactions in perfect competition market. All transactions both in sales and purchases are made entirely from the price agreements that have been given by the market. Nothing is manipulated and manipulated, the entire price given by the market is what it is from the market itself.
Most people understand this intuitively. If there is an item of interest, the buyer is willing to pay a higher price. So also with the seller of course would be more happy if merchandise purchased with high price. Let's know more about this concept.
Where Power Supply & Demand Applies
First, you must understand where the forces of supply and demand apply. It is assumed that supply and demand comes from the market. Actually the market is just a collection of buyers and sellers of a certain goods or services.
The power of supply and demand refers to the behavior of buyers and sellers or referred to as market participants. The buyers do demand in the market, while the seller provides the supply. The types of markets include: forex market, stock market, cattle market, and so forth. These markets have different functions and types of each.
Buyer And Seller
The characteristic of supply and demand is the presence of so many buyers and sellers. In a perfectly competitive market model, none of them can affect individual markets. So, a supplier will not be able to do anything on the market to influence the market even though he has a large capital. Because almost all sellers and buyers in the market are using the same product with the same type, so if there is a seller for example able to raise the price, many of its customers will go elsewhere to get the same goods and certainly cheaper.
Examples of perfect market trading for example the forex market. Buyers and sellers in this market can not affect individual market prices, but can only accept market-determined prices from seller and buyer agreements as a whole.
Balancer Price
As you may know, the market determines the price in the presence of supply and demand that serves as a price counter. If you review in the real market sometimes a lot of monopoly in the market. In addition to monopoly, sometimes there is also oligopoly and competitive monopoly. It does not reflect real justice because it benefits only a few people.
By doing a transaction in the forex market, then you are already doing transactions in perfect competition market. All transactions both in sales and purchases are made entirely from the price agreements that have been given by the market. Nothing is manipulated and manipulated, the entire price given by the market is what it is from the market itself.
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