What is the meaning of supply and demand?
The main reason and opinions of the rise in the price of any commodity or currency is the supply and demand it is also the main reason for the decline of any commodity or currency and here we can know the following "Lesson XVII Free Forex Course"
If you have a car priced at $ 10,000 and there are 5 people who want to buy it, you will sell it for $ 10,000
But what if I found 10 people want to buy them will raise the price to 11 thousand dollars and you will find who buys it because there are 10 people want to buy your cars, that the demand is high and the offer of which only a few are 1 cars displayed and the number of students and want to buy 10 people if the price rises to 11 thousand dollars
But if you find the number of people wanting to buy them down to 2 people only then here will reduce the price to sell will make it 9 thousand because if you offer 11 thousand will not buy it will reduce it to 10 and probably will not be sold and will lead to reduce them at 9 to attract a buyer to sell them at the price 9 thousand Here we find that their price has fallen
The reason for their decline is the supply and demand law Supply and Demand
That is, the number of people wanting to buy your item decreased from 10 to 2 people and therefore their price dropped
If this applies to the stock market, commodities and currencies as well
When he wants to demand the US dollar rises in price and when demand is reduced, the price drops
And if those wishing to buy the dollar more than sellers will increase the price of the dollar
Here we find that the demand has increased and the supply from the lowest price
vice versa
If you want to buy a US dollar less, sellers are more likely to supply more and demand less
Prices will drop
This is the supply and demand law and the effect on the price
Now go to the next lesson in the Forex Education Course from the Forex Kokash Technology website and learn the Forex field step by step through our website
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Another explanation
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What is the currency rate? How is the currency rate determined? Currency rate
Lesson 16 in the course of free Forex education entitled What is the price of the currency? And what tariff
The price of a currency is its price against the price of another currency
Example: The price of the Egyptian pound against the dollar is currently 17 pounds
That is, you buy 1 dollar, you only have to pay 17 Egyptian pounds
The reason for the rise in the price of a currency for another currency is the economy, size and size of the country. The larger the size and economy of the state and its strength in the fields of industry and technology, technological progress and export whenever the price of the currency higher than the prices of other currencies and stronger
Also, you should know that when you want to buy a currency, you have to be paid for it
In other words, currencies are sold as casuaj in our previous example
We bought 1 dollar for 17 Egyptian pounds
That is, we sold the currency of the pound and bought another currency, the US dollar
If the currency we get is the currency purchased "dollar"
The currency we pay in return is the currency sold "Egyptian pound"
And here we turn to the question arises in mind what is the reason why the price of the currency of the dollar jump to 18 Egyptian pounds
Or why the currency of the dollar is less than 16 Egyptian pounds
This is the supply and demand and will be explained in detail in the next lesson in the course of free Forex education from the site of Forex Cookash go to the next lesson and if not follow the course from the beginning All the course is on the site you can go back and follow it
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