Supply and Demand Forex Trading

Trading is an activity in the financial market with the aim of making large profits in a short time. Like other buying and selling activities, trading also has a risk of profit and loss. That's normal, but how can traders minimize the level of losses, then there are things that are understood in trading. One of them is about SND (Supply and demand).

The basic concept of supply and demand for beginners is important to understand. The supply and demand zones are areas that can be observed on forex charts where prices have approached many times in the past. Unlike support and resistance lines, these are more like zones than precision lines.

Basically, this supply is the amount of goods that are available at one time in the market, while for demand itself is the amount of goods desired at that time. If an item has experienced an increase in its supply, while the amount of demand will remain stable, then from the trader's point of view, there will be no cycle of money exchange and renewal of goods, or with other intents, the trader will lose because the goods are not in demand. In order not to experience a bloated loss, traders will lower the prices of the goods they sell so that the interest of buyers can rise again.


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