Very nice of you to offer others to lose their shirt on this.

May want to consider hiding the Eve Name, or make it optional? If the user checks "anonymous" the name on the list shows as "anonymous", you however would still know who it is.

Might get more participation?

Block, could you please make this a permanent feature and implement it for all the minerals?

Are these futures of forwards?

Also, to make this work you need to create your own market, including graphs or data export and stuff. The low liquidity will create a market that only loosely will follow the underlying commodity.

Are you going to use "open interest" as the criterium to match the orders?

when/how often do you check prices?

which prices do you use?

in a volatile market these questions matter a lot and yet you don't address them at all

I plan to make it a more permanent feature and include other minerals if this becomes succesfull.

These are shorts.

I'm not sure I understand your question about "open interest". We will accept an open contract when the opening price matches the maket price.

1) You are selling as "shorts" what in reality are a crossover between "forwards" and futures.

In fact like a forward the medium is a contract, which you don't have in regular non derivatives trading unless you think about CFDs, have a contract expiration and a settlement.
Like a futures you are asking for margin, are using an underlying in commodities, the medium is a contract, have a contract maturation date, and you settle it in an exchange (yours).

...

1) The author creates a contract immediately 'paying out front' to the 'system' the maximum potential profit an investor could get from the deal and also has the corresponding minerals/items/various materials being 'confiscated' until clearing of the contract.

*** for example based on the system the OP is describing and using the numbers he posted. the author 'pays' the maximum profit an investor can have, aka 29,600,000 ISK, and has his 100.000 units of nocxium 'confiscated' from the station hangar. ***

I disagree. These are shorts.

The investor is borrowing the Nocxium from the Reserve so he can sell it on the market. The main difference from RL is that the investor is not getting physical Nocxium. Instead, IGÇÖm selling it for him and holding the funds so I can purchase it for him at a later time at the closing price. Basically, IGÇÖm acting as his broker. Unlike forwards and futures, he can settle the contract at anytime at market price.

The use of a contract is simply to formalize the agreement. The maturity date is meant as a maximum length of this agreement.

That is not a short sell and it is not what I'm describing here.


In short sell, the investor does not own the Nocxium, he is borrowing it from a third party (me). There is no Nocxium to "confiscate".

... What i am describing is ...

It seems that there is very little interest in shorting Nocxium. I would like to get your feedback on the lack of interest.

What's holding you back? What is it that you don't like about shorting Nocxium? Your comments will be appreciated. Thank you in advanced.

1) I'd like a proper futures contract.

2) I'd like to be able to choose whether to go long or short on it.

3) I'd like to have market data about it.

4) You need to provide contracts for all the minerals.

5) In the way you have posted about your proposal, people IMMEDIATELY ask themselves "where's the catch? If this guys forces me to short then it's because he knows I'll lose".

Also, explaining to people about futures is hard. Most look at price rising NOW and don't even stop a second to think it might go down in 1 month. Therefore they pass on the investment.

Personally, until there won't be a free long / short option, choice of underlying and liquidity this is a "don't bother".
How can I buy / sell stuff if I have all of 3 people in the secondary market willing to sell / buy? Prices will be settled like crap.

In this investment, the price is determined by the eve market, not traders in the secondary market. At opening, Nocxium is sold in the eve market. To close a contract, Nocxium will be purchased from the secondary market.

Exactly. The secondary market imo is the weak point of this initiative. I buy today at a certain price (say 950) then 1 month from now the primary market is at say 600 and I decide to sell. What happens? GǪ

I'm sure you are both making intelligent points, but short selling has always made my head turn into a Mobius strip. I would like to see some type of futures contract written into the game, however. It seems like a missing niche.

An Example
You purchase one contract with a 1,200 ISK opening market price and 800 ISK closing price. We will then sell the Nocxium at 1,200 and purchase it back from the market when it reaches 800 ISK. LetGÇÖs assume it took two months for this contract to settle. At closing we will return your margin plus profits. In this case your profit will be:
40,000,000 ISK (sale) GÇô 8,000,000 (20% profits) GÇô 2,400,000 (2% interest)
OR
29,600,000 ISK

If the profit is negative (nocxium rises 30%), how do calculate ? Is it .....

-40,000,000 ISK (sale) GÇô( - 8,000,000 (20% profits) )GÇô 2,400,000 (2% interest) = 29,600,000 ISK loss

OR

-40,000,000 ISK (sale) GÇô( 0 (20% profits) )GÇô 2,400,000 (2% interest) = 40,000,000 ISK loss

This buisiness modell makes only sense if your are willing to share the loss as well as the profit

This offer is neither a shared business nor a partnership. IGÇÖm giving you the opportunity to short sell which is something that is not possible to do in game.

An Example
You purchase one contract with a 1,200 ISK opening market price and 800 ISK closing price. We will then sell the Nocxium at 1,200 and purchase it back from the market when it reaches 800 ISK. LetGÇÖs assume it took two months for this contract to settle. At closing we will return your margin plus profits. In this case your profit will be:
40,000,000 ISK (sale) GÇô 8,000,000 (20% profits) GÇô 2,400,000 (2% interest)
OR
29,600,000 ISK

Why shouldnt a player sell his nocxium by himself ... and buy it back when prizes dropp ?

This arragngement is either a 29,600,000 win or 10,400 000 loss (because i can sell and buyback the nocxium buymyself)

........
Yes, the borrowing Nocxium is the definition of "regular short" (opposed to the naked short, where the borrowing does not happen)......

This means that the buyer of such a short is buying the short-seller's promise to deliver a share, rather than buying the share itself. The short-seller's promise is known as a hypothecated share.

So you are offering "naked shorts" arent you ?

It seems that there is very little interest in shorting Nocxium. I would like to get your feedback on the lack of interest.

What's holding you back? What is it that you don't like about shorting Nocxium? Your comments will be appreciated. Thank you in advanced.

Most people would probably rather invest directly. And I mean directly directly, not in your little index funds.

I understand that people like to invest directly. However, you can't short sell directly.