What "demand" means in finance

Demand refers to the quantity of a particular financial instrument or asset that buyers are willing to purchase at a given price and time. It is a measure of how much of a product or service is desired by buyers at a specific price level. The law of demand states that when the price of a product or service increases, the demand for it decreases, and vice versa. Therefore, demand plays a crucial role in determining the market price of financial instruments and assets.