What is the real market in finance?
The real market is the extent that exists between the price required by the product and the amount that the consumer is willing to pay. Identifying the scope of this market does not necessarily include identifying the basic value of the product or even the retail price required by the product on other markets. The buyer and sellers seek to identify the scope of the real market when they try to create a transaction that is mutually beneficial.
For sellers, understanding of the current real market can increase the chances of sales. Determination of the required price often involves considering the current level of product demand and also focusing on competitive goods prices that are similar to nature and easily accessible to consumers. If the aim is to maintain current business and at the same time earn a business from competitors, the seller sets the required price at a level that certainly attracts attention and highly likely to motivate consumers to buy.
The buyer also seeks to determine the scope of the real market because it concerns a product they want to get. Here, emphasis is placed on determining the level of interest in the product and how it would benefit the buyer. From there, the buyer looks at the available range of competing products, compares them for value and quality and is the price of which he is willing to pay for the product ownership. For the best circumstances the amount that the buyer is willing to pay
The concept of the real market is also common for investment activity. Here the seller looks at the offer and asks the quotations associated with the transaction. Ideally, the seller can compare the bid price of the potential buyer with the price for the seller, allowing the agent of the agreement to be satisfied with both parties with the terms and conditions of the transaction and collect fees for the mediated agreement.
Other real market applications may include investment creationA strategy that requires the purchase of shares of a given security when it reaches a certain price and then sell these shares at a particular higher price. With this arrangement, the investor provides the seller instructions to make each order segment, when and how these offers and price requests become viable. The strategy of this type may allow the investor to gain a considerable amount of return if he is able to maintain the asset for as long as necessary to achieve the desired result.