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-   -   Market - Closed system or Opened system? (https://www.forexfactory.com/showthread.php?t=508747)

alexx90 Oct 16, 2014 6:29am | Post# 1

Market - Closed system or Opened system?
 
Hi, first a little explanation from wikipedia.
A closed system is a physical system which does not allow certain types of transfers (such as transfer of mass) in or out of the system.
An opened system continuously interacts with its environment or surroundings. The interaction can take the form of information, energy, or material transfers into or out of the system boundary.
Do you think that Market is a closed system or an opened system? I mean, do you think that market has always the same mass or that the mass can change during time/move?

orabi Oct 16, 2014 7:32pm | Post# 2

the mass changes inside market from your view because you place your money inside the market in trades but looking at money generating way you have added nothing because money is all calculated so major trends don't get effected by your money what ever size is it only major central banks can effect it so you are inside closed circle but from your view you can say that you have added money to trading in trading circulation through brokers but you have added nothing to money cycle
that's why bonds are so important they are the only way you can know big moves time watch tic report and bonds buying people tend to sell gold and things with high price in there cycle to buy bonds for income now central banks are doing that adding liquidity by buying bonds back from holders like what usa have did with quantitative easing this is money adding to system but else is it not adding it is just you moved from circle to another and you will change nothing .
moving are trading that are effected by a lot of factor bonds major big deals in real life exchange rate for people trading normal markets or commercial physical and electronic markets and us to lesser extent .you have limit on your trades you can not trade more than certain lots even if you have money because you can lose and you will not find the opposite or the central banks control that
this is a general information i am not a professional i just said my view of things please if i am wrong forgive me
all have a nice day


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