TRADE PRICE Meaning and
Definition
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Trade price refers to the cost or value at which goods, commodities, or securities are bought or sold in a commercial transaction between two parties. It is the price determined by the immediate buyer and seller within the market, commonly referred to as the "traders," based on their mutual agreement.
In trading contexts, the trade price represents the actual price at which a specific asset or product is exchanged, as opposed to the listed or offered price. It embodies the momentary equilibrium between supply and demand in an active market, as buyers seek to acquire goods at the lowest possible price while sellers aim to maximize their profits.
The trade price is influenced by various factors, including market conditions, the scarcity or abundance of the item being traded, prevailing economic trends, and the negotiating ability of the buyer and seller. It can fluctuate constantly as information and circumstances change, resulting in traders adjusting their bids and offers accordingly.
The significance of the trade price extends beyond individual transactions and serves as a reference point for market analysts, economists, and investors in determining the true value or intrinsic worth of a particular asset. It is often used as a benchmark for assessing market trends, calculating indices, and evaluating the performance of a specific sector, industry, or overall economy.
Common Misspellings for TRADE PRICE
- trad e-price
- rrade price
- frade price
- grade price
- yrade price
- 6rade price
- 5rade price
- teade price
- tdade price
- tfade price
- ttade price
- t5ade price
- t4ade price
- trzde price
- trsde price
- trwde price
- trqde price
- trase price
- traxe price
- trace price
Etymology of TRADE PRICE
The term "trade price" refers to the price at which goods or services are bought by businesses for the purpose of resale or trade. The etymology of this phrase can be broken down as follows:
1. Trade: The word "trade" originated from the Old English word "trād", which means a path or course. It evolved to mean "path of habitual occupation or trade" or "the art of buying and selling" in Middle English.
2. Price: The word "price" originated from the Old French word "pris" or "price", which means value or worth. It was derived from the Latin word "pretium", which also means price or worth.
Combining these two terms, "trade price" emerged to represent the value or worth of goods or services within the context of business transactions and trading activities.
