2025 ICT Mentorship: Lecture 4_Premium & Discount Price Delivery Intro
Greetings Traders!
In this video, we dive into the fundamental concept of Premium and Discount Price Delivery—a crucial aspect of smart money trading that helps us understand how institutions approach the market with precision and efficiency.
Understanding Currency Pairs
Before we explore premium and discount dynamics, it's essential to grasp the basics of currency pairs. A currency pair, like EUR/USD or GBP/USD, represents the value of one currency against another. For example, EUR/USD shows how many U.S. dollars (the quote currency) are needed to purchase one euro (the base currency). Just like any other tradable asset, currency pairs fluctuate in value due to various economic and market factors.
Trading Is Part of Everyday Life
Believe it or not, everyone in the world is a trader. Whether you're buying groceries at a store or negotiating for goods and services, you're participating in trading activities daily. Some people aim to purchase items at a discount, while others can afford to pay a premium—it’s simply part of life.
However, banks and financial institutions take trading to another level. They don’t just trade haphazardly—they operate with extreme precision, aiming to make high-quality investments by executing trades at premium prices and targeting discount levels. This strategic approach allows them to capitalize on market inefficiencies and ensure profitable outcomes.
Why Premium and Discount Matter?
The concept of premium and discount price delivery is foundational for understanding how the market moves. By recognizing where the market is trading at a premium (overvalued) versus a discount (undervalued), traders can make more informed decisions and align their strategies with institutional order flow.
Stay tuned as we break down how to identify these zones on a chart and how to incorporate them into your trading strategy. Make sure to like, subscribe, and turn on notifications so you never miss an update!
Happy Trading,
The_Architect
Greetings Traders!
In this video, we dive into the fundamental concept of Premium and Discount Price Delivery—a crucial aspect of smart money trading that helps us understand how institutions approach the market with precision and efficiency.
Understanding Currency Pairs
Before we explore premium and discount dynamics, it's essential to grasp the basics of currency pairs. A currency pair, like EUR/USD or GBP/USD, represents the value of one currency against another. For example, EUR/USD shows how many U.S. dollars (the quote currency) are needed to purchase one euro (the base currency). Just like any other tradable asset, currency pairs fluctuate in value due to various economic and market factors.
Trading Is Part of Everyday Life
Believe it or not, everyone in the world is a trader. Whether you're buying groceries at a store or negotiating for goods and services, you're participating in trading activities daily. Some people aim to purchase items at a discount, while others can afford to pay a premium—it’s simply part of life.
However, banks and financial institutions take trading to another level. They don’t just trade haphazardly—they operate with extreme precision, aiming to make high-quality investments by executing trades at premium prices and targeting discount levels. This strategic approach allows them to capitalize on market inefficiencies and ensure profitable outcomes.
Why Premium and Discount Matter?
The concept of premium and discount price delivery is foundational for understanding how the market moves. By recognizing where the market is trading at a premium (overvalued) versus a discount (undervalued), traders can make more informed decisions and align their strategies with institutional order flow.
Stay tuned as we break down how to identify these zones on a chart and how to incorporate them into your trading strategy. Make sure to like, subscribe, and turn on notifications so you never miss an update!
Happy Trading,
The_Architect
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.