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A market price is the price at which a share or other financial product is traded on the exchange. It is the current market price at a specific moment. This price can change continuously during the trading day.
The market price is formed through the interaction between buyers and sellers.
When more investors want to buy than sell, the market price rises. When more investors want to sell than buy, the price falls. The exchange itself does not determine the price; it is automatically established by supply and demand. Factors such as company results, economic news and expectations about the future can influence how investors act, and therefore affect the market price.
Short example:
Suppose a share is priced at €40 on the exchange. One investor places a buy order at €40 and another investor wants to sell at €40. The transaction is executed at €40, which is the market price. If many investors are then willing to pay €42, the market price rises to €42. If instead more sellers want to sell at €38, the market price falls to €38.
Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult a professional advisor when making financial decisions. The information and tips provided on this website are based on the personal insights and experience of our analysts and are intended for educational purposes only.
