An example of trading
If you were in the car market, which means exchanging cars, which is the commodity that is obtained in exchange for money.
And
you have a desire to buy a specific model, and you are the only one in
the store who buys that model, here you can get it at a reasonable
price.
If there is a large percentage of
buyers who want to buy the same model, this means strong competition
between them to obtain that commodity.
Here, the merchant will raise its price because there is a large group of people who want to obtain it.
Here,
he explains the first principle of trading, which indicates a high
demand for the commodity, which means the desire to obtain it, which
results in raising its price.
In contrast, the store has 10 cars of the same model that you want to buy, and there are only 2 buyers.
Therefore, the store reduces the price of the car in order to attract a large group of buyers.
This
step emphasizes the second principle of trading, which is the increase
in the supply of the commodity, which results in a decrease in its
price.
Therefore, the trading process is
done by exchanging a certain thing for another that is equal in value,
and that value is determined based on the strength of supply and demand.
Over
the ages, trading has evolved, in order to obtain the thing, the
counterpart differed in each period from the form of fried goods to
another commodity, as the exchange may be made for gold or metal.
The Wall