Support and Demand difference

[Maggzzx]

Hey does anyone know the difference between support and demand? Thanks in advance

 

[enriluis01]

Hey does anyone know the difference between support and demand? Thanks in advance

I hope the following explanation help you out.
Support refers to a level at which a financial asset's price tends to stop falling or experience reduced selling pressure due to increased buying interest. It acts as a floor for the price, potentially causing a reversal or slowdown in the downward movement. On the other hand, demand represents the desire and ability of buyers to purchase a product or service at various price points. It shows the quantity of the product or service that buyers are willing to buy at different prices. While support focuses on price levels, demand focuses on the quantity buyers are willing to purchase at those prices.

Suppose there is a sudden increase in supply of the British Pound due to negative economic news or political uncertainty in the UK. Traders and investors may perceive the Pound as a weaker currency and start selling it in the Forex market. This increased supply of Pounds relative to the US Dollar creates downward pressure on the GBP/USD exchange rate. As a result, the price of the GBP/USD currency pair declines as sellers are willing to accept fewer US Dollars in exchange for Pounds. On the other side, buyers in the market may see the declining price as an opportunity and start buying Pounds at the lower exchange rate. This increased demand for the Pound, in contrast to the available supply, can help stabilize or reverse the downward price movement. The interplay between the supply of and demand for a currency pair determines the equilibrium exchange rate at which buyers and sellers agree to transact. This supply and demand dynamic plays a crucial role in shaping the fluctuations in Forex market exchange rates.

 

[Charles Agustin]

As part of technical knowledge, try to gain knowledge on support and resistance level. In supply and demand, the prices are not determined. To tarde forex properly, a trader must have sufficient knowledge on support and resistance level.

 

[Maggzzx]

I hope the following explanation help you out.
Support refers to a level at which a financial asset's price tends to stop falling or experience reduced selling pressure due to increased buying interest. It acts as a floor for the price, potentially causing a reversal or slowdown in the downward movement. On the other hand, demand represents the desire and ability of buyers to purchase a product or service at various price points. It shows the quantity of the product or service that buyers are willing to buy at different prices. While support focuses on price levels, demand focuses on the quantity buyers are willing to purchase at those prices.

Suppose there is a sudden increase in supply of the British Pound due to negative economic news or political uncertainty in the UK. Traders and investors may perceive the Pound as a weaker currency and start selling it in the Forex market. This increased supply of Pounds relative to the US Dollar creates downward pressure on the GBP/USD exchange rate. As a result, the price of the GBP/USD currency pair declines as sellers are willing to accept fewer US Dollars in exchange for Pounds. On the other side, buyers in the market may see the declining price as an opportunity and start buying Pounds at the lower exchange rate. This increased demand for the Pound, in contrast to the available supply, can help stabilize or reverse the downward price movement. The interplay between the supply of and demand for a currency pair determines the equilibrium exchange rate at which buyers and sellers agree to transact. This supply and demand dynamic plays a crucial role in shaping the fluctuations in Forex market exchange rates.

Thanks for the help! This makes sense

 

[O_O]

Support is the act of providing assistance, help, or resources to someone or something. It's usually done to help an individual or group accomplish something that they might not have been able to do on their own.

Demand, on the other hand, refers to the willingness or desire of people to buy or use a particular product or service. It can also refer to the amount of a particular product or service that people want to buy or use, based on their needs or desires.

In summary, support is the help given, while demand is the willingness to buy or use something.