Your question has two parts:
Basic Principles of Global Trading
How is the rate or price determined in marketing?
I will explain both in simple language:
1. Basic Principles of Global Trading
A: Supply and Demand
The higher the demand for something, and the lower the supply, the price will go up.
The higher the supply, and the lower the demand, the price goes down.
B: Global News
Wars, agreements, government policies, interest rates, economic reports — all these affect the price.
C: Market Sentiment
If people are optimistic (bullish), prices rise.
If people are fearful (bearish), prices fall.
D: Basis of Currency and Index
Most trading occurs in US Dollar or Stablecoins.
People buy and sell Bitcoin, Ethereum, or other crypto assets in USDT.
2. How is the rate or price determined in marketing?
A: Market Price
The price that is agreed upon between the buyer and seller.
It changes every second, especially in crypto.
B: Order Book
On platforms like Binance, you see the order book:
Buy Orders: How much people want to buy for.
Sell Orders: How much people want to sell for.
The price that forms between both is the Current Market Price.
