Course › Level 0 — What is trading, actually?

Why do prices move?

Every price is a live auction between buyers and sellers.

• More people want to buy than sell → price goes up until sellers show up.
• More people want to sell than buy → price goes down until buyers show up.

In real markets (forex, gold, stocks), the buying and selling comes from banks, funds, companies and traders reacting to news, economic data and each other.

In synthetic indices, price is generated by a secure random-number engine that's built to behave like a real market — with a fixed, published volatility. Volatility 75 moves with 75% volatility, Volatility 100 with 100%. Nobody (not even Deriv) knows the next tick, and the engine is independently audited.

The takeaway for you

You never need to know why every move happened. You need to recognise what buyers and sellers are doing right now — and charts show you exactly that. That's Level 2.

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