Supply and demand are more complex than most traders and economists give them credit for. I think most people view supply as “people selling” and demand as “people buying”. However, there are 2 distinct forms of market participation: passive market forces through the limit order book, and active market forces from market orders. Moreover, these 2 forms exist on both sides of the market. Because of this, I propose that the term “supply” be used to denote the passive, limit order book forces on both sides of the market, and the term “demand” be used to denote the active, market-order […]