Miraye Khoury
Gallente Time Cube Syndicate
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Posted - 2007.07.25 19:10:00 -
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Edited by: Miraye Khoury on 25/07/2007 19:10:39 First of all, think of what you're doing in setting up a buy order. You are asking for an item by another party in exchange for some money. However, buy orders do not guarantee that the exchange will take place right away, in fact, you don't even know who will sell you the good for the money you promised in your buy order. This is where the concept of escrow comes in.
Escrow, as taken from wikipedia (though never a good source to quote, seems just fine for this purpose), is a legal arrangement in which an asset (often money, but sometimes other property such as art, a deed of title, website, or software source code) is delivered to a third party (called an escrow agent) to be held in trust pending a contingency or the fulfillment of a condition or conditions in a contract such as payment of a purchase price.
Or basically, your money goes in escrow to a third party (the SSC I believe) so that when you do get the item, the money you promised will be sent to the seller in question.
Consider I set a buy order for a new ship for 1 million ISK. I am not buying from anyone directly, but am stating a demand for this particular ship for the sum of 1 million ISK. To get this ship, of course, requires me to have 1 million ISK (duh!). However, I also have to promise the seller of that ship that I will have the money to pay him when the time comes for him to sell. It is a promise that can only be kept with trust... Otherwise known as escrow!
Escrow in Eve can be taken back by canceling the buy order in question; the only money you lose is the broker's fees you spent in setting up that order (sales tax doesn't apply until the item and money are exchanged between two parties).
Margin Trading, is a slick talent which good traders use to make the most out of their money. The 25% bonus is multiplicative and not additive per level, so each further training reduces it further. At no level, you must reserve 100% of your buy order price in escrow. At 1 level, it's chopped down to 75%. Level 2 chops it down to 56.25% and not 50% (note the difference is much less). Whatever the level, when the buy order is fulfilled, you need to pay the remainder of the promised buy order to acquire the product. Going back to my 1 million ISK ship, if I had level 1 in Margin Trading, then I only have to pay 750,000 ISK upfront in escrow. However, when someone sells the ship to me through that buy order, I will have to pay the remaining 250,000 ISK for it. For more info on Margin Trading, check out this awesome post by Herko Kerghans... http://oldforums.eveonline.com/?a=topic&threadID=200967&page=1#2
Hope this helps!
Wikipedia article on escrow: http://en.wikipedia.org/wiki/Escrow
EDIT: Doh! Ki Tarra beat me too it...
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