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How to best use Margin trading?

Author
Rings Vespori
Republic Military School
Minmatar Republic
#1 - 2015-06-01 14:09:56 UTC  |  Edited by: Rings Vespori
I have started trading on an alt, and it has margin trading ii now. What is the smartest approach to using the spare cash? For now I try to keep 30%-50% of the cash I have to cover liquid in my wallet.

My short term approach will be to use this mechanic to create "deeper" buy orders for the same items I trade atm, so that I have to make new buy orders less frequently. Once my Budget goes up enough, and I finish Retail V i want to start looking into expanding my item range further, however I wonder what would be the best practice here to maintain optimum cash flow?

Another question:

ATM i have mixed buy orders, some of which need 75% escrow, some 56%. At what point do I need to pay for the isk to cover?

or lets say i buy 100 units of an item for 1 million, with margin trading i. I pay 750k into escrow. At what point will the market require me to pay the 250k? is ti 2.5k with every unit, or 10k for the last 25 units each?
Magnu Stormhawk
#2 - 2015-06-01 16:34:40 UTC  |  Edited by: Magnu Stormhawk
When you set up a buy order with margin trading, the amount that is put into escrow is used to complete the transaction on each part of the order that is filled, until that order runs out of escrow. From that point on, ISK is taken directly from your wallet to cover purchases until the order is completed in full.

As such you can manage with quite a minimal amount in your wallet if you are constantly selling your purchased stock. You can sell the first few items gained from a buy order before the escrow even gets used up.

Unless you are trading high value low volume where a single purchase spike can make a huge dent in your wallet, it is rarely a problem (in my experience), because the ISK churn from regularly listing what you have bought is sufficient to maintain the cycle.
Cista2
EVE Museum
#3 - 2015-06-01 17:27:46 UTC
What Magnu says.
Once you hit your balance where you have orders on many items and maintain a cash wallet of 5-10% of your worth, you will never need to think about Margin Training again. It is just there. working for you 24/7.

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