Investment News 04-10-2022 18:52 76 Views

Market Mechanics – Understanding How Prices Move in The Markets

“Why does price move?” is an interesting question that traders spend very little time contemplating.  Traders tend to accept that price moves around in a semi-orderly fashion without worrying about the mechanics behind a price move. Why does the price of any market move at all? Why doesn’t it stay in one place? Why doesn’t it jump around at random? Why doesn’t the emini S&P500 (ES) trade at 2100.25 one minute, 999.75 the next, then 10,000.00 the next? It's all about market mechanics.

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