What Moves Prices (Really)
The big forces behind every move on your chart
4 sections · 2 quiz questions · ~5 min read
Supply and Demand, at Scale
Every price move is just more buyers than sellers, or more sellers than buyers. Simple. But WHO are those buyers and sellers? Not you and me. It's central banks, hedge funds, and giant corporations — moving billions at a time. Their reasons are the "fundamentals," and knowing them stops you from being surprised mid-trade.
The Three Big Forces
Forex prices move for three main reasons: (1) interest rates — when a country raises rates, people want to hold that currency to earn more. (2) Economic data — jobs, inflation, GDP tell the world if a country is healthy. (3) Central bank talk — when a central banker hints at rate hikes or cuts, markets jump right away.
Why This Matters to You
You do NOT have to predict these things. Even the pros can't. What you need is to know when big news is coming out so you don't get stopped out by a 100-pip spike you never saw coming. Knowing your schedule is half the battle.
A Simple Rule
When you see a chart moving in a weird straight line for no reason — it's usually news. Check the economic calendar before every trade. If high-impact news drops in the next 30 minutes, wait. Nothing you gain from a rushed trade is worth the risk.
Quick check
Did it stick?
Try to answer each one before you peek at the explanation.
1
Which of these is NOT one of the three main forces that move forex prices?
2
You should try to predict economic news before it comes out.