How Price Is Formed

Price in the market is not "regulated" by someone, but is formed as a result of trading between buyers and sellers. By understanding this process, you can better read market movements.

The Main Principle: Demand vs. Supply

In the market, the price finds an equilibrium point between buyers (demand) and sellers (supply).

• When there are more buyers than sellers — the price goes up
• When there are more sellers than buyers — the price goes down
• When quantities are balanced — the price remains stable