Have you ever wondered what makes prices move in the financial markets? Did you think it was down to being more participants on one side over the other, say more buyers than sellers that’s why the price goes up and more sellers than buyers, and that’s why the price goes down?
Turns out this is a very common misconception and is not the case at all, it is down to aggression, it is market participants aggressively wanting to enter a position so much so they are willing to potentially pay a higher premium to do so. That’s it. These take the form of market orders. Market orders are typically executed when a market participant wants to enter a trade at the best price in the market at that point in time say for example they want to jump on to a stock that is moving quickly and just want in, this is what causes prices to move that much faster are virtue of their haste in enter they drive the price up that much quicker.
