Price Discovery

Price movement is driven by interactions between market buyers and sellers. Market sellers drive prices downward by accepting lower prices against passive buy orders. Market buyers push prices upward by accepting progressively higher price…

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Price movement is driven by interactions between market buyers and sellers. Market sellers drive prices downward by accepting lower prices against passive buy orders. Market buyers push prices upward by accepting progressively higher prices from available sellers. Passive orders wait at price levels until market takers execute against them. Continuous price ticks result from market takers interacting with passive liquidity.