How do charts on forex platforms work? -

Lets say the the computer chart moves the price from 1,5000 to 1,5001-a one pip move.Why?I could understand if the price would move once a day but every second or so?A one pip move has to mean something,there is a reason why it moved for only one pip.Whats that reason? Also how does the chart know to move the prices? For each movement a graph is made. When such graphs are combined together you can see the graph moving in electronic trading. Of course the market is very volatile so there are bound to many graphs.The graph seems to be moving thus.Each trading Software is linked with market thro coding which shows the movements according to the markets. Well, one of the main characteristics of the forex market is its extremely high LIQUIDITY. This is because the forex market is not like a normal stock exchange market that has an opening and closing hour; the forex market includes all transactions in currencies around the world, anytime, by anyone. The data is collected from various banks through Reuters agency. Basically what they check is how much the banks are charging for buying or selling of the currency pair (e.g. EUR-USD), and then the quot;standard pricequot; can be calculated. Yes, it s such a huge market with so much money flowing in it, so many participants and so many deals being done, that the price can fluctuate every second or so. As for what moves the price up and down - as usual it s supply and demand. When someone buys, he pays a slightly higher price (the quot;ask pricequot;) boosting the price up, and vice versa with the quot;bid pricequot;. The one-pip movement you re describing is the result of average weighting of all transactions that occurred in the last second (or any other arbitrary time frame). Then all the charting services, which are connected online to the forex network, can display the change - close to real-time if not perfectly at it. Good luck. :-)