Mechanical Aspects of Price Change
|Short-term patterns are usually explained by means of mass psychology, but there is also a mechanic aspect of orderflow and micro structure that explains such price movements. With the help of an idealized model, I will explain why and how prices move in the spot currency market covering basics such as the difference between the impact of limit and stop orders, what causes slippage and what happens with the so-called "stop hunting". This session is the continuation of a previous one called "Structural Aspects of the FX Market".
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