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Squibbly Dooo
Amarr
Libera Mentem Tuam
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Posted - 2008.08.24 16:15:00 -
[1]
Edited by: Squibbly Dooo on 24/08/2008 16:16:49
OKay now I think I understand Margin Trading in that at level 5 say you only have to play approx 25% of total buy order value in escrow when placing the buy order. That's fairly self explanatory. My query is about what happens afterwards.
Lets say for example I have 1 Billion isk and lets also say for arguements sake that trit value is 2.5 Isk p/u just to make life easier
Without Margin Trading a buy order for 400 million trit would cost me the full billion I have in escrow which would be used to pay for the trit every time someone sold me any amount.
However with Margin Trading 5 ( am unsure of the exact % but lets say 25% ) the same 400 million trit buy order would only require me to place 250 million into escrow.
Okay lets stop there for a second. At what point is the rest of the buy orders value ( the other 750 million isk ) paid ? Once the full buy order has been completed or does it take cash from my account once the 250 million escrow has run out ? In this case after the first 100 million trit has been purchased.
Now lets move on to the second question. Say that the escow is at 25% it would appear that I could infact place a buy order for 4 times the amount of trit that I could actually afford so in this case with the 1 billion I have I could place a buy order for 1.6 billion trit and the escrow would take my full billion.
So here is where I get a bit fuzzy on the skill mechanics.
Will the buy order only work upto the point where the escrow can be paid to the sellers to my buy order if my personal wallet is empty thereby I would only be able to obtain 400 million trit anyway ?
Will the buy order keep going regardless of the fact that my escrow amount has been depleted and my personal wallet is empty there by once fully completed placing me at 3 billion in debt ?
Any help is appreciated
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Jamie Freely
Gallente
Trading and Industry LLC
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Posted - 2008.08.24 19:03:00 -
[2]
The buy order is filled til the margin is used up, at that point it starts to pull the isk right out of your wallet.
IF you don't have the isk for the order the order is cancelled with no harm.
Personal I only have margin skill to 3 as that's all I really need. I have accounting and brokering skills at 5 for it to be the cheapest I can make it.
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Squibbly Dooo
Amarr
Libera Mentem Tuam
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Posted - 2008.08.25 06:37:00 -
[3]
 Originally by: Jamie Freely
The buy order is filled til the margin is used up, at that point it starts to pull the isk right out of your wallet.
IF you don't have the isk for the order the order is cancelled with no harm.
Personal I only have margin skill to 3 as that's all I really need. I have accounting and brokering skills at 5 for it to be the cheapest I can make it.
Then I fail to see any real advantage to training this skill at all. Regardless of wether you have margin trading level 1, 5 or dont even have the skill trained at all you would still only be able to gain goods via a buy order to the maximum that your current wallet can purchase.
In fact placing buy orders for more than your current wallet it worth which you would be capable of doing with the Margin Trading skill would infact lose you money due to the higher brokers fee which even with Accounting trained would not offset.
Unless I am completely missing the point all this skill would change is the order in which business deals would take place.
With Margin Trading ... Player places buy order total worth 1 Billion but only places 250 Million in escrow. Player then uses other 750 Million for fast purchase and sale at a profit to ensure than cash is available to complete buy order.
Without Margin Trading ... Player uses 750 Million for fast purchase and sale at a profit. Player then places buy order total worth 1 Billion which of course player can pay into escow.
So other than changing the order of such business deals like this there seems no other actual benefit and let's face it the first example is hardy a benefit for should the second deal fall through the buy order would be cancelled once the escrow runs out costing the player 4 times the brokers fees for actual items gained.
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Sexiest Beast
Caldari
State War Academy
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Posted - 2008.08.25 12:01:00 -
[4]
if you had a wallet of 1bil then put it all into escrow (buy order) you will then have a zero balance in your wallet.
if you have margin trading then you could still place a buy order worth a bil but use the excess (skill dependent) isk on other trades your 750mil isk still in your wallet becomes a useable cash flow for other trades and investments.
as to your Questions im not sure as i dont have the skill trained. However if you had margin trading and your buy order was slowly filled and you was put into debt it would make your life exceptionally hard as a negative wallet really gimps you. this is very doubtfull due to being exploitable :)
If your investment gets cancelled as stated by the above poster then your investment is lost and you would need to reset a buy order which is a total pain in the ass
I do see the use of margin trading and if you were a dedicated trader then having isk in your wallet for future trading is pretty cool. you could offset trades against each other and use one investment to help pay towards others :)
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Jamie Freely
Gallente
Trading and Industry LLC
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Posted - 2008.08.25 23:37:00 -
[5]
Originally by: Squibbly Dooo
Then I fail to see any real advantage to training this skill at all. Regardless of wether you have margin trading level 1, 5 or dont even have the skill trained at all you would still only be able to gain goods via a buy order to the maximum that your current wallet can purchase.
Most people wouldn't do this but here is how I use it,
I place large orders for minerals at low buy prices, the last thing I want is to have 2 billion sucked out. The orders will be filled in a few weeks so I go and place other orders for things that I know will be filled faster. So I can have more of the market covered with the margin trading than if I had to cover all my orders.
But as I said, I didn't see the need to train the skill to 5 just to 3 or 4.
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