GlossaryLevel 0

New agreements move the price

A price does not move by itself. Every new number is a new handshake — a different buyer and a different seller agreeing on a different number. When people say "the price" of a product they usually mean the number of the most recent completed agreement, the last price, and the moment the next agreement lands somewhere else the price has changed. If a record shows 250 yesterday and 262 today, the only thing you know for certain is that a new buyer and a new seller agreed at 262. The common misreading is to load the number with a reason: "the product gained value", "buyers won", "it will rise again tomorrow". A number records what happened, never why; ask it for a cause and the cause you get is usually the one you invented. For risk literacy the consequence is plain: whoever acts on a reason the record never supplied is trusting a story of their own making.

This content is educational information, not personalised investment advice. The chart examples are illustrative.

Lessons that teach this concept

  1. Level 0Introducing lessonWhy do prices change?

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