An example of trading

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doaausef3li
Posts: 8
Joined: Fri 6. 9. 2024, 05:26:50

An example of trading

Post by doaausef3li »

If you were in the car market, which means exchanging cars, which is the commodity that is obtained in exchange for money.
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And you have a desire to buy a specific model, and you are the only one in the store who buys that model, here you can get it at a reasonable price.

If there is a large percentage of buyers who want to buy the same model, this means strong competition between them to obtain that commodity.

Here, the merchant will raise its price because there is a large group of people who want to obtain it.

Here, he explains the first principle of trading, which indicates a high demand for the commodity, which means the desire to obtain it, which results in raising its price.

In contrast, the store has 10 cars of the same model that you want to buy, and there are only 2 buyers.

Therefore, the store reduces the price of the car in order to attract a large group of buyers.

This step emphasizes the second principle of trading, which is the increase in the supply of the commodity, which results in a decrease in its price.

Therefore, the trading process is done by exchanging a certain thing for another that is equal in value, and that value is determined based on the strength of supply and demand.

Over the ages, trading has evolved, in order to obtain the thing, the counterpart differed in each period from the form of fried to another commodity, as the exchange may be made for gold or metal.

Commodities are also exchanged for several different forms of money, credit, digital or electronic.
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