Why I need to know: As a programming portfolio project, I want to make a 'mock market' where fake stocks change price based on market forces. I've googled around but can't find any specific formula or algorithm that does this.
I understand the concept of "people buy, price goes up, people sell, price goes down". This is straightforward and makes sense, but is not detailed enough for what I need to know.
So really, how is the ticker price calculated every few seconds? What is the mathematical process that has to happen? A friend who works in finance said he thinks it's just the mean of all the bids and asks in the exchange, but I was shocked he didn't know for sure.
Any help is greatly appreciated!
[link] [comments] https://www.reddit.com/r/stocks/comments/14v21nm/what_is_the_actual_math_that_determines_a_stock/
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