Financial markets, like stock/shares or currency markets, are places where people buy and sell assets such as stocks, bonds, or currencies. Prices in these markets change all the time based on what buyers and sellers are willing to pay. When more people want to buy an asset than sell it, the price tends to go up. Conversely, if more people want to sell than buy, the price tends to go down. These movements happen quickly and constantly as new information and different opinions influence traders’ decisions.

What Influences Price Changes

Many factors can influence how prices change in the financial markets. Some of the most important include economic news, like reports on jobs, inflation, or economic growth, which can make investors more confident or worried. Political events, such as elections or international conflicts, can also impact prices. Additionally, central banks’ decisions about interest rates can influence markets, because they affect how attractive investing in certain assets is. Finally, investor emotions, like fear or optimism, can cause prices to move sharply, sometimes even more than the actual news or data.