Price Discovery


DEFINITION of 'Price Discovery'


BREAKING DOWN 'Price Discovery'

Price discovery is the general process used in determining spot prices. These prices are dependent upon market conditions affecting supply and demand. For example, if the demand for a particular commodity is higher than its supply, the price will typically increase (and vice versa).

  1. Supply

    A fundamental economic concept that describes the total amount ...
  2. Public-Private Investment Program ...

    A plan designed to value and remove troubled assets from the ...
  3. Commodity

  4. Orderly Market

    Any market in which the supply and demand are reasonably equal. ...
  5. Economics

  6. Demand

    An economic principle that describes a consumer's desire and ...
Related Articles
  1. Forex Education

    Getting Started In Foreign Exchange Futures

  2. Active Trading

    Grow Your Finances In The Grain Markets

  3. Options & Futures

    Trading Gold And Silver Futures Contracts

  4. Options & Futures

    Fueling Futures In The Energy Market

  5. Options & Futures

    Options On Futures: A World Of Potential Profit

  6. Options & Futures

    Terrorism's Effects on Wall Street

  7. Investing Basics

    Explaining the Liquidity Preference Theory

  8. Options & Futures

    Ultra ETFs Are Not Your Father's ETFs

  9. Active Trading Fundamentals

    How to Trade Dow Jones Future Contracts

    Learn about the Dow Jones Index futures contracts available and obtain step-by-step instruction on how to trade the stock index futures.
  10. Options & Futures

    Haunting Wall Street: The Halloween Terminology Of Investing

  1. What valuable information can a company's Additional Paid in Capital provide to potential ...

    Additional paid in capital (APIC) represents the amount of money paid by shareholders above the par value of each share. ... Read Full Answer >>
  2. How are futures used to hedge a position?

    Futures contracts are one of the most common derivatives used to hedge risk. A futures contract is as an arrangement between ... Read Full Answer >>
  3. What is the difference between forward and futures contracts?

    Fundamentally, forward and futures contracts have the same function: both types of contracts allow people to buy or sell ... Read Full Answer >>
  4. What is the difference between options and futures?

  5. Do hedge funds invest in commodities?

  6. Can mutual funds invest in options and futures?


You May Also Like

Hot Definitions
  1. Barefoot Pilgrim

  2. Quick Ratio

  3. Black Tuesday

  4. Black Monday

  5. Monetary Policy

  6. Indemnity

Trading Center