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T2 modules market crash?

Author
Tesal
#21 - 2012-08-10 00:56:27 UTC
Cat fight!
*reaches for the popcorn*
Kara Books
Deal with IT.
#22 - 2012-08-10 19:43:30 UTC
If you really want to know.

Several days ago, I liquidated a rather sizable old stockpile of my Tech 2 fittings, I.E. I want to take a little break (maybe a month).

Prices should not drop by more then 15% per month, but fittings are fidgety, people buy em all up and relist then it goes down slowly, other fittings sell so fast that they might even go up at times.

Some one will manipulate then again, and the prices will fall again and again and again.
Sigras
Conglomo
#23 - 2012-08-12 09:18:25 UTC
wait, wait, im still interested in this whole shorting the market thing because thats what ive been wanting to do for years.

But when you short the market, somebody has to take the opposite position, if that person is you, you stand to lose a lot of isk, how exactly would you make this work?

Even if you could get people to trust you, you wouldnt be the broker so much as the person taking the opposite position.
Vaerah Vahrokha
Vahrokh Consulting
#24 - 2012-08-12 18:34:53 UTC
Sigras wrote:
wait, wait, im still interested in this whole shorting the market thing because thats what ive been wanting to do for years.

But when you short the market, somebody has to take the opposite position, if that person is you, you stand to lose a lot of isk, how exactly would you make this work?

Even if you could get people to trust you, you wouldnt be the broker so much as the person taking the opposite position.


Well, it depends on how you take the situation.

The most classic short selling (that is NOT the naked short selling) involves the following steps:

1) Borrow stock from someone, usually there's a fee / interest to pay attached to that.
2) Sell it.
3) Wait, let the market do its course.
4) Buy stock from market
5) Give it back to said someone.
6) Steps 2 - 4 stock value = the trade profit.


In my particular case, I might have stocks of isotopes and minerals I need in the next weeks.
So I don't need them *now*. You could exactly do as above: borrow the minerals from me at current bond interest value (say 5-8% a month, pro-rated / rescaled as needed), do your stuff, give the minerals back at maturity date.
Sigras
Conglomo
#25 - 2012-08-13 11:23:45 UTC
yes, i know what short selling is, but my question is, why not do it yourself? arent you losing the isk that you could have made doing that very thing?

Also Im assuming you want collateral which is to be expected, because otherwise whats keeping someone from just leaving with your stuff?
Vaerah Vahrokha
Vahrokh Consulting
#26 - 2012-08-13 12:54:16 UTC
Sigras wrote:
yes, i know what short selling is, but my question is, why not do it yourself? arent you losing the isk that you could have made doing that very thing?


For the same reason people make me hold collateral instead of selling it. They need it later or they don't want to go re-acquire it or they are even using it for their own speculations.


Sigras wrote:

Also Im assuming you want collateral which is to be expected, because otherwise whats keeping someone from just leaving with your stuff?


Yes.
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