Theory of Supply &Demmand

--------------

Supply and demand are the principal factors that affect the pricing of foreign currencies or futures and stocks.

**********

Supply is the amount of any one asset that is available or in circulation - such as  XAUSD 

- EURUSD - USSJPY chart that i post befor- while demand is the general desire for that asset.

This is because of two pertinent economic terms called the law of supply and the law of demand.

---------------- 

**** The law of demand dictates that the price of an asset will rise if the demand for that item goes up. The law of supply dictates that, if the amount of something goes up -without demand also going up .

--------------

then the price of it will decrease. For the forex space, this could mean more of a certain currency on sale in the forex market, or more of that currency in circulation as issued by the central bank. However, if there is a scarcity and the demand is higher than the current amount of a currency on offer in the forex space or in circulation, then its price will increase.

**************

The laws of supply and demand affect how every market behaves in the financial world, so understanding them is vital for trading success. And understanding how supply and demand affects assets’ rises and falls will significantly increase your chances of predicting market moves correctly.  

How does supply and demand affect forex and futures markets?

-----------------

The principles of supply and demand are very much present in trading. In forex 

and  futures trading.

The amount of sellers = the supply

The amount of buyers = the demand

In forex and futures markets both will be affected by events happening in the general market, as these will either increase or decrease the number of people interested in buying or selling at a certain price. If an item of good news breaks on a certain country, for example, this will attract more buyers of this currency in the forex market. There may not be enough seeking to sell, thanks to all the demand, so buyers will have to offer at a premium. 

The same would be true if a significant bout of negative news broke and everyone wanted to sell – there might not be enough wanting to lift the offer hence price would fall further.

----------

  A general rule of thumb, a wealth of traders looking to buy or go long on a currency will drive its price up, while a lot of sellers wishing to short or offload their positions on a certain currency will bring its price down.

---------------

**** Another major thing that affects forex  and futures marets and stock  that value is the supply and demand factors that go into the  Manin curncey itself, as almost all of the forex and future  trades in the world .