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Damzk Raholan
Viziam Amarr Empire
1
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Posted - 2015.02.22 11:23:03 -
[1] - Quote
Hi there.
I posted something a while ago about how to scale up your station trading business. Now i'm here (still station trading) asking another question. How important do you feel the "Margin Trading" skill is?
Let me give you an example. Sure, I can see how margin trading would be very effective if you have sell orders up in backwater systems covering massive amounts of space buying volumes from lazy players. You put up your buy order, check it once a week or every few days, you're golden.
But when station trading, how often do you use Margin Trading? This is a genuine question, not a challenge of the norm (if that is even the norm). I can see how beneficial having isk in your pocket is, however, what are the real downsides to using Margin Trading when using the day trading option?
Note, I have 0 levels in Margin Trading and 5 in Accounting/Broker Relations. Is it worth it? Or should I train warehouse/tycoon instead?
Are there any benefits when DAYTRADING to not using margin trading? As in, not putting a lump of isk out there?
My worry is that if you put out 100 orders, or 200 orders, how easy would it be for the market to collapse/shift/you lose your margin (10%) and since you have 100-200 orders to manage, you could easily slip up and miss an item that is currently falling. No? As this does happen, markets do shift.
Thank you for your time. |
Luthias Austrene
Drone Orphanage Ethical Carnage
13
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Posted - 2015.02.22 11:59:59 -
[2] - Quote
Personally, I like having margin trading, as long as you keep track of how much ISK is in your wallet vs how much you need to cover. I prefer having at least 50% of the ISK I need to cover in my wallet, but I could probably put that up to 70% or more without too much trouble. It definitely helps when you have less ISK because 1 or 2 failed orders won't matter when you get the profit from the ones that were filled.
You could always train it one level at a time and see if you like it. I haven't got V yet, I don't see the benefit..
EDIT: Also, Warehouse is good. Get both if you're serious about trading. |
Ms Sade
Hammertime Holding Division Nine Alliance
11
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Posted - 2015.02.22 14:28:30 -
[3] - Quote
Markets shift and you can use margin trading to have that low buy order sitting there ready for the bottom to fall out at a reduced escrow...
Depends if that kind of thing interests you
Oh and it's good for diversification....more order up for the same isk in escrow.
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HeXxploiT
Little Red X
103
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Posted - 2015.02.22 19:56:50 -
[4] - Quote
More money makes money. The fact is the more capital I have to work with the more money I can make. If I gave you 10bil isk right now would you be able to make a larger profit then you currently are? If you wouldn't then clearly you've reached the peak of your trading career. Well trading on margin is essentially the same thing as having extra isk. There really aren't any downsides to margin trading. If not managed properly you can miss out on buy orders but this isn't really a downside since you never had the isk for the product to begin with.
Also understand that margin trading in eve is very different then margin trading in the real world. The term "margin trading" is defined quite differently in the real world and in reality there are substantial risks to trading on margin. It's too bad eve doesn't reflect a more realistic economy in order to weed out the posers. |
Sabriz Adoudel
Glorious Revolutionary Armed Forces of Highsec CODE.
4714
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Posted - 2015.02.23 00:04:11 -
[5] - Quote
I have it to 4.
It's most famous for the scamming applications (which I don't do on this character), but there is basically never a time that I have enough ISK to cover all of my buy orders.
Chaos. Opportunity. Destruction. Excitement... Vote #1 Sabriz Adoudel for CSM 10
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TheSmokingHertog
TALIBAN EXPRESS
289
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Posted - 2015.02.23 02:27:31 -
[6] - Quote
Leverage. Do I need to say more? |
The Greenmachine Greenmachine
Green's Bicycle Shop
103
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Posted - 2015.02.23 16:12:46 -
[7] - Quote
have it @ V on several characters... for my evil deeds |
MistaPwn
Syrian Seal Cub Clubbing Club
1
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Posted - 2015.02.24 00:56:01 -
[8] - Quote
The Greenmachine Greenmachine wrote:have it @ V on several characters... for my evil deeds Yeah Greens got the right idea, It's a must..;) |
voetius
Quiet Days in Clichy
336
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Posted - 2015.02.24 21:30:52 -
[9] - Quote
Damzk Raholan wrote:Hi there.
I posted something a while ago about how to scale up your station trading business. Now i'm here (still station trading) asking another question. How important do you feel the "Margin Trading" skill is?
Let me give you an example. Sure, I can see how margin trading would be very effective if you have sell orders up in backwater systems covering massive amounts of space buying volumes from lazy players. You put up your buy order, check it once a week or every few days, you're golden.
But when station trading, how often do you use Margin Trading? This is a genuine question, not a challenge of the norm (if that is even the norm). I can see how beneficial having isk in your pocket is, however, what are the real downsides to using Margin Trading when using the day trading option?
Note, I have 0 levels in Margin Trading and 5 in Accounting/Broker Relations. Is it worth it? Or should I train warehouse/tycoon instead?
Are there any benefits when DAYTRADING to not using margin trading? As in, not putting a lump of isk out there?
My worry is that if you put out 100 orders, or 200 orders, how easy would it be for the market to collapse/shift/you lose your margin (10%) and since you have 100-200 orders to manage, you could easily slip up and miss an item that is currently falling. No? As this does happen, markets do shift.
Thank you for your time.
That is the tricky bit. You need to know your markets. If you are trading in e.g. T2 modules in Jita then yes, it's useful as you will be waiting for buy orders to fill and your hardest job will be to beat the other buyers to snag the goods. You would probably want much more isk in buy orders than sells and Margin Trading will help you there.
I have several characters with Margin Trading V but I don't use buy orders that much as I've changed the way I trade recently. |
Sabriz Adoudel
Glorious Revolutionary Armed Forces of Highsec CODE.
4720
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Posted - 2015.02.24 22:37:10 -
[10] - Quote
Even if you don't use buy orders much you definitely will still use them occasionally, so MT 3 is a must. It's a day of training.
Chaos. Opportunity. Destruction. Excitement... Vote #1 Sabriz Adoudel for CSM 10
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Cixi
Hedion University Amarr Empire
0
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Posted - 2015.02.25 10:01:24 -
[11] - Quote
I have it to V on multiple alts and I never failed an order. |
Alex Grison
Grison Industrial Group
912
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Posted - 2015.02.26 16:24:02 -
[12] - Quote
much
yes
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SJ Astralana
Syncore
97
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Posted - 2015.02.26 19:57:23 -
[13] - Quote
If you have a positive cash flow margin trading is a no-brainer. It's when you expand your business and have no real way of knowing its impact on short term cash flow while capitalizing it that MT gets... interesting. But as the only downside is loss of broker fees it's not the end of the world if while flying by the seat of your pants you get caught with your pants down.
Hyperdrive your production business: Eve Production Manager
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Felicity Love
Imperium Galactic Navy
2208
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Posted - 2015.02.27 14:11:27 -
[14] - Quote
Some folks love it and make awesome use of it.
Personally, I never use it. The only ISK that actually matters to me is the ISK in my wallet and/or invested in commodities, products, etc..
"How important" then comes down to your "style" as a trader, meaning is it useful to you?
"EVE is dying." -- The Four Forum Trolls of the Apocalypse.-á-á ( Pick four, any four. They all smell. -á)
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