Why Stock Prices Move Every Second: A Simple Explanation

 

If you’ve ever opened a trading app, you’ve seen stock prices jumping up and down every second. One moment Bajaj Auto is at ₹4,900… the next moment it touches ₹4,920… then falls to ₹4,880.

Why does this happen?
Who decides these prices?

Let’s understand this with a simple explanation.

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1. Stock Market Works on One Principle: Demand & Supply

Just like any marketplace—vegetable market, electronics market or even online shopping—prices change based on how many buyers and sellers there are.

If more people want to BUY a stock → price goes UP

If more people want to SELL a stock → price goes DOWN

This is the real engine behind every price movement.

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2. Real-Time Trading Creates Real-Time Price Changes

Stock prices update instantly because buyers and sellers place trades continuously—every second.

Example:
You open your app and search for Bajaj Auto.

Suddenly you see:

• Price moves up on positive news
• Price falls on negative news
• Price fluctuates when different investors place different types of orders

This constant flow of orders makes the chart jump in real time.

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3. News Impacts Stock Prices Immediately

News acts like petrol on fire in the market.

✔ Positive News → Price Jumps

For example:

• Strong quarterly results
• High sales numbers
• New product launch
• Expansion announcements

If Bajaj Auto reports strong sales, investors rush to buy.
Demand increases → price moves up.

✔ Negative News → Price Falls

For example:

• Weak earnings
• Industry slowdown
• Government policy impact

If news websites report weakening performance, sellers increase → price drops.

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4. Why Do People Value a Stock Differently?

Every investor has their own thinking:

• Some buy because of long-term growth
• Some sell because they fear losses
• Traders buy because of charts
• Investors buy because of fundamentals
• Some exit due to global market pressure

This mix of psychology & strategy creates hundreds of buy/sell decisions every second, causing constant price updates.

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5. Example: Bajaj Auto Price Movement

Imagine Bajaj Auto trades between ₹4,900–₹5,000.

1. Positive report:
   “Exports up 20%” → more buying
   Price moves towards ₹5,000+

2. Negative report:
   “Demand slowing down” → more selling
   Price slips towards ₹4,850–₹4,900

This change is not fixed—it is shaped by what lakhs of investors do every minute.

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6. App Shows Prices LIVE Because of the Exchange

Your trading platform receives live prices directly from:

• - NSE (National Stock Exchange)
• - BSE (Bombay Stock Exchange)

Every micro-second, the app updates the last traded price (LTP) based on completed transactions.

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Final Takeaways

Here’s what you should remember:

• Stock prices change mainly due to demand & supply
• News greatly influences investor behaviour
• Every investor values a stock differently
• Trading apps show prices live from NSE/BSE
• Price movement is natural and continuous

Understanding this helps you make smarter decisions instead of panicking during fluctuations.

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