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Margin Trading?
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alting Viliana
Federal Navy Academy
Gallente Federation
#1 - 2013-07-25 16:57:29 UTC
Can someone Explain exactly how the Margin trading skill is justified by CCP?

you can`t really buy and resell anything withouth being prone to the scam, sure if the buyorder looks too good to be true it prolly is, however, when the buyorder isn`t even a very good deal it is still a scam, so it doesn`t have anything to do with making bad investments
Rhivre
TarNec
Invisible Exchequer
#2 - 2013-07-25 17:30:55 UTC
How do you differentiate between:

A "not very good deal" margin scam, and a buy order which got filled/pulled before you dumped your buys to it?



anyway, the purpose of margin trading is to allow traders to set buy orders in advance...the chances of all your buy orders filling at once is so small as to be a non-event.
Most people buy and resell without ever being affected by the scam.

Have I had buy orders disappear as I went to fill them? Yep, but it wasnt the margin scam.
Have I pulled buy order just as someone was about to fill them? Probably.

Have I ever had buy orders fill before the isk was there? Nope.

Fluffy Bunny Pic!

I LIKE IT
HIGH RISK INVESTMENT
#3 - 2013-07-25 18:12:45 UTC
JUST BECAUSE YOU DONT GET THE JOKE DOES NOT MEAN IT AINT FUNNY
Admiral PizzaRoll
Krull Serenity
#4 - 2013-07-25 20:04:09 UTC
alting Viliana wrote:
Can someone Explain exactly how the Margin trading skill is justified by CCP?

Margin trading is pretty much the only thing that makes station trading a viable profession for people who don't already have tens of billions of ISK.
Bad Bobby
Bring Me Sunshine
In Tea We Trust
#5 - 2013-07-25 21:32:22 UTC
Admiral PizzaRoll wrote:
alting Viliana wrote:
Can someone Explain exactly how the Margin trading skill is justified by CCP?

Margin trading is pretty much the only thing that makes station trading a viable profession for people who don't already have tens of billions of ISK.

It's pretty useful afterwards too.
joffre lannister
ARAZ Engineering
#6 - 2013-07-25 22:51:39 UTC
Margin trading? "Margin" trading is borrowing money from your broker to purchase more stocks with funds that you dont currently have available to you. In the real world (also applies to Eve) if you have say 500M cash on hand but you need an additional 500M to bring your working capital to a total of 1B for 'trading'.
arabella blood
Keyboard Jihad
#7 - 2013-07-25 23:13:24 UTC
joffre lannister wrote:
Margin trading? "Margin" trading is borrowing money from your broker to purchase more stocks with funds that you dont currently have available to you. In the real world (also applies to Eve) if you have say 500M cash on hand but you need an additional 500M to bring your working capital to a total of 1B for 'trading'.


I find that margin trading reminds me of "leverage" in Forex...

Troll for hire. Cheap prices.

joffre lannister
ARAZ Engineering
#8 - 2013-07-25 23:17:57 UTC
arabella blood wrote:
joffre lannister wrote:
Margin trading? "Margin" trading is borrowing money from your broker to purchase more stocks with funds that you dont currently have available to you. In the real world (also applies to Eve) if you have say 500M cash on hand but you need an additional 500M to bring your working capital to a total of 1B for 'trading'.


I find that margin trading reminds me of "leverage" in Forex...


Yes absolutely, I think people get margin trading and profit margins confused. Wish my broker had a Forex service -_-
RubyPorto
RubysRhymes
#9 - 2013-07-26 04:54:26 UTC
joffre lannister wrote:
Margin trading? "Margin" trading is borrowing money from your broker to purchase more stocks with funds that you dont currently have available to you. In the real world (also applies to Eve) if you have say 500M cash on hand but you need an additional 500M to bring your working capital to a total of 1B for 'trading'.



In the real world, that's what trading on margin is.

In EVE, the skill "Margin Trading" does something else.


Just like in the real world, your understanding of thermodynamics does not let you simply stick a blowtorch on your car engine to make it go faster.


Anyway, INB4 "This thread again?"

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." -Abrazzar "the risk of having your day ruined by other people is the cornerstone with which EVE was built" -CCP Solomon
Zappity
New Eden Tank Testing Services
#10 - 2013-07-26 07:29:48 UTC
This thread again?

Zappity's Adventures for a taste of lowsec and nullsec.
flakeys
Doomheim
#11 - 2013-07-26 07:39:47 UTC
I LIKE IT wrote:
JUST BECAUSE YOU DONT GET THE JOKE DOES NOT MEAN IT AINT FUNNY



I don't get it ............ Cry

We are all born ignorant, but one must work hard to remain stupid.
RubyPorto
RubysRhymes
#12 - 2013-07-26 07:42:14 UTC
flakeys wrote:
I don't get it ............ Cry


What's the old saw about attorneys and lawyer jokes? Lawyers don't get them, and nobody else thinks they're jokes.

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." -Abrazzar "the risk of having your day ruined by other people is the cornerstone with which EVE was built" -CCP Solomon
flakeys
Doomheim
#13 - 2013-07-26 09:01:08 UTC
RubyPorto wrote:
flakeys wrote:
I don't get it ............ Cry


What's the old saw about attorneys and lawyer jokes? Lawyers don't get them, and nobody else thinks they're jokes.


I saw what you did there ...

We are all born ignorant, but one must work hard to remain stupid.
MotherSammy
Clan Sammy Trade Empire
#14 - 2013-07-27 08:19:32 UTC
alting Viliana wrote:


you can`t really buy and resell anything withouth being prone to the scam


Sure you can, you just have to spend a couple of minutes researching whether the numbers in front of you represent the true value of the item. If you're too lazy to do that, you deserve to get scammed.
Enthropic
Infinite Point
Pandemic Horde
#15 - 2013-07-29 11:32:06 UTC
How much do your overextend your wallet whit the margin trading skill?

Lets say I have 10 bil liquid ISK and 10 more bil to cover for outstanding orders after escrow.
How much would you reinvest, how much liquid ISK would you hold in reserve (assuming you have healthy buy and sell orders up)
HeXxploiT
Doomheim
#16 - 2013-07-31 19:31:32 UTC
I traded for years and when I was introduced to eve was instantly attracted to the accuracy of how the markets reflected real world mechanics. When I discovered that the margin trading option was nothing like real world margin trading I opened a petition in game and had a back and forth with a couple of individuals who were very knowledgeable and explained to me that although CCP does have professional economists working on the game, it is not supposed to reflect real world economics & definitions therein.

Basically they summed it up as, it's a videogame not real life so it's ok that the definition of margin trading does not reflect that of the real world definition.

I suppose what really irritates me is not the mechanic that allows players to scam but the name itself.
It should be renamed "debting" or anything without the word "margin".

It's rather like selling transmissions on market and you buy one because your vessel needs a tranny only to find that it's actually a rear view mirror that they have named "transmission".