What is Market Price ?
In finance, the term market price, or market value, refers to the most recent price at which a security transaction took place, if it was completed on an exchange. If the transaction took place over-the-counter, with brokers and dealers negotiating directly with each other, market price refers to the most current bid, the price requested by the broker, and the most current ask, the price demanded by the dealer. As an economic concept, market price is the price at which a good or service is offered at in the marketplace. This price is reached when market supply and market demand meet. Alfred Marshall, an influential English economist, developed the supply and demand model to explain how human behavior determined market price. Supply is the service or good that producers are willing to provide at a given price. Demand is the value of a service or good that purchasers are willing to buy at a given price. There is an inverse relationship between price and supply, and a direct relationship
Put simply, the market price is the price at which supply and demand agree with each other. Every single chart movement on your screen represents a deal made between a buyer and a seller. Buyers buy because they think the prices are low, and sellers sell because they think the prices are high. The buyers are expecting the market to rise, and the sellers are expecting it to fall. The chart patterns that subsequently form on your trading screen thus reflects the psychology and thinking of all the traders who transacted with each other. And although different traders have different expectations about where the market price is headed, there are general price levels where most traders agree that are either too high or too low; thus forming support and resistance price levels. What Are Support And Resistance Levels? A support level is a particular price at which many buyers would be entering the market. When the market price is going down (i.e. when there are many sellers), support levels ar
