This section will cover the basics of trading and what drives market prices, as well as supply and demand.
As we touched upon in the previous section, trading has been around since the beginning of time, when people wanted to exchange goods between one another and make profits while doing so. Modern markets are still driven by basic economic principles of supply and demand. When demand outweighs supply, prices of a commodity or service are likely to rise higher to reflect the relative shortage of the commodity or service in relation to the demand for it. Conversely, if the market is flooded with a lot of sellers for a particular product, prices are likely to drop. Hence, the market is always trying to reflect the equilibrium price between available supply and demand for a particular product. We will see later how this is the fundamental...
