>I can do a deal with that last guy. I buy up his dollars, and now the low offer is 140. If I want more I’ll have to pay 140 for them. The new price is 140.
How does this kind of price-changing happens in reality? I suppose it is all instantaneous, so... Does each organization have their own software that automatically gathers data regarding current global prices (including the most generous offer across the network) and sets 139, 140, 141... accordingly as their offer price at that point in time?
nowjeon906 OP t1_ixyp18w wrote
Reply to comment by agate_ in ELI5: Who actually adjusts a currency exchange rate using global supply and demand data? by nowjeon906
>I can do a deal with that last guy. I buy up his dollars, and now the low offer is 140. If I want more I’ll have to pay 140 for them. The new price is 140.
How does this kind of price-changing happens in reality? I suppose it is all instantaneous, so... Does each organization have their own software that automatically gathers data regarding current global prices (including the most generous offer across the network) and sets 139, 140, 141... accordingly as their offer price at that point in time?