Glossary

Price Discovery

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Price discovery is the process of setting a price for an asset. This will occur naturally as independent buyers and sellers each set the price they are willing to trade at. This trading activity will be influenced by orders from other traders as well as news related to the asset’s value.

Related Terms
Capital Markets
Capital markets are platforms that facilitate the trading of assets. These markets facilitate the matching of buyers and sellers.
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Spot Price
The spot price of an asset is the current price it is trading at. This number is specific to a given market. Spot prices are set by market participants.
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Market Maker
A market maker is willing to buy or sell large quantities of an asset simultaneously. This adds significant liquidity to the market.
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