First it must be noted that buyers will always wanna buy low and sellers wanna sell high.
Thats why you have a spread on the quote.The quote represents the best price at which buyers who wanna buy and sellers who wanna
sell express their intention. They would also have the intended size they wanna buy and sell. The size would usually be unequally matched As this is the best price so far it will be reflected in the quote as example 10bid $15 offer. No buyer will quote a bid which is higher than the offer price and no seller
will offer a price lower that the bid price shown on the quote At most it they wanna do the deal desperately, they will take up the buyers bid or the seller offer price. If no one wants to budge, then the quote will remain as it is. until someone a buyer who quote a higher buy price or seller who quote a lower sell price than previously starts to come in.and in which case a new quote will appear
Price will go up if the buyers take up all the sellers offer in the mkt at a best given price and if there are still unfulfilled
demaind, the next quote will be a higher bid and offer price. This will go on until the demand is fully satisfied and no more buyer looking to buy at the higher price and sellers sensing that slow demand less than supply will wanna sell their inventory by either lowering their price or take up whatever any buyers bid price
and this will continue until more demand than supply comes and buyers start bidding up the price again.
Simply put, this is roughtly whats going on behind the scene between buyers bid and sellers offer.
Thats why you have a spread on the quote.The quote represents the best price at which buyers who wanna buy and sellers who wanna
sell express their intention. They would also have the intended size they wanna buy and sell. The size would usually be unequally matched As this is the best price so far it will be reflected in the quote as example 10bid $15 offer. No buyer will quote a bid which is higher than the offer price and no seller
will offer a price lower that the bid price shown on the quote At most it they wanna do the deal desperately, they will take up the buyers bid or the seller offer price. If no one wants to budge, then the quote will remain as it is. until someone a buyer who quote a higher buy price or seller who quote a lower sell price than previously starts to come in.and in which case a new quote will appear
Price will go up if the buyers take up all the sellers offer in the mkt at a best given price and if there are still unfulfilled
demaind, the next quote will be a higher bid and offer price. This will go on until the demand is fully satisfied and no more buyer looking to buy at the higher price and sellers sensing that slow demand less than supply will wanna sell their inventory by either lowering their price or take up whatever any buyers bid price
and this will continue until more demand than supply comes and buyers start bidding up the price again.
Simply put, this is roughtly whats going on behind the scene between buyers bid and sellers offer.
Hindsight is useless if you never learn anything out from it