Lesson Four: The Language of the Market (The Battle Between Bulls and Bears, and the Secrets of Execution)

In the world of trading, you won’t hear the words "rise" and "fall" very often. Instead, you’ll hear terms that describe market conditions and traders’ psychology. To understand how the market moves and how your trades are executed, you need to master these fundamental concepts:

First: Market Trends (The Eternal Battle)

The financial market is a constant battleground between buying and selling forces, represented worldwide by two animals:

🐂 Bullish market: Also known as a bull market. It is named after the bull, which attacks its opponent with its horns from bottom to top. When we say the market is “bullish,” it means buyers’ optimism is in control, demand exceeds supply, and prices rise to reach new highs.

🐻 Bearish market: Also known as a bear market. A bear attacks its opponent with a powerful claw strike from top to bottom. When the market is “bearish,” it means sellers and fear are in control, supply exceeds demand, and prices fall.

Second: How trades are executed (screen figures)

When you open a trading platform (such as MetaTrader) to execute a trade, you will always see two different prices moving together for the same financial asset. This is how execution works:

🟢 Ask price: The price at which you can buy the financial asset from the broker. (It is always the higher price).

🔴 Bid price: The price at which you can sell the financial asset to the broker. (It is always the lower price).

✂️ Spread: The gap or mathematical difference between the Ask price and the Bid price. This spread represents the cost of executing the trade or the basic commission charged by the broker for routing your trade to the market.

#Education #gold #tradingforex #cryptocurrency #السلسلة_التعليمية