Pillinger Works

Buyers and Sellers

BeginnerB-006
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Every executed transaction requires both a buyer and a seller willing to trade at compatible terms. Buyers generally provide demand, while sellers provide supply. Market participants may trade for very different reasons: speculation, investment, hedging, liquidity provision, portfolio rebalancing, or risk management. We should therefore avoid assuming that every buyer is bullish or every seller is bearish. The transaction itself tells us that two parties agreed on an exchange, not why they chose to participate.

Key Terms

  • Buyers and Sellers — the core concept introduced in this lesson.