Difference between revisions of "Trading"
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Just like in the real world, much of the economy is driven by supply and demand. If you are unfamiliar with the concept, you may [http://www.investopedia.com/university/economics/economics3.asp read up on it online]. <b>Demand</b> refers to how much (quantity) of a product is desired by buyers. <b>Supply</b> represents how much the market can offer. As a trader, you want to sell goods when the overall demand is high (when people really want what you are selling), but also when the supply is low (when noone else is selling what you are). | Just like in the real world, much of the economy is driven by supply and demand. If you are unfamiliar with the concept, you may [http://www.investopedia.com/university/economics/economics3.asp read up on it online]. <b>Demand</b> refers to how much (quantity) of a product is desired by buyers. <b>Supply</b> represents how much the market can offer. As a trader, you want to sell goods when the overall demand is high (when people really want what you are selling), but also when the supply is low (when noone else is selling what you are). | ||
| − | Predicting supply changes ahead of time will allow you to estimate price changes before they happen. For example, if you believe famine is coming, it may be a good idea to stock up on food and sell it when everyone is hungry. On the other hand, if you have a pile of diamonds and a new diamond mine opens, it might be a good idea to sell before | + | Predicting supply changes ahead of time will allow you to estimate price changes before they happen. For example, if you believe famine is coming, it may be a good idea to stock up on food and sell it when everyone is hungry. On the other hand, if you have a pile of diamonds and a new diamond mine opens, it might be a good idea to sell before everyone has pockets full of diamonds. |
Revision as of 21:47, 11 September 2015
Trading is the act of transferring goods (or currency) from one party to another.
The parties may include two players, a player and an NPC, a player and a town, a player and a bank, a player and the mainland (or any other combination).
Types of Trade
Trade does not always happen in the same way. From the player's perspective, there are three very different types of trade:
- Export Trade - e.g. selling goods offshore.
- Shop Trade - e.g. buying an item from a shopkeeper.
- Bank Transactions - e.g. sending money between player accounts.
- Direct Trade - e.g. player to player item transfer.
There are several other, special cases where the player transfers their goods to another party. These inclue taxation, fees, bank account transactions and loans.
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Making Profit
Trade is not only a way of moving around items, it is also one of the best ways to make profit. Learning about the economy is crucial to making profitable trades - and it can be the difference between barely getting by and becoming rich.
Currency Flow
The currency in Elpida changes hands in a predictable way. The movement of currency between parties is called currency flow. The movement of currency is broadly broken down into three steps: generation, transfer and sink. To make profit, realise where most of the money is gathered and what possible paths there are for you to obtain it.
- Generation - All of the currency in the system is generated when characters export goods. Each trade on the export market results in currency being sent into the economy from the mainland, effectiely appearing out of nothing.
- Transfer - Once the currency is given to a character during export, they are free to trade it as they please. A part of it is automatically sent to the town (as export tax). The rest may be traded away to players, to NPCs, or to the town itself. Transfer may happen actively - as a direct decision. For example, you may decide to send money to another player's bank account, to trade money for a sword with an NPC, or to donate money to the town's treasury. Transfer may also happen passively - most often as taxation. For example, the town may tax you when you need medical services. The money usually changes hands several times, staying in the system until the town decides to ultimately spend it.
- Sink - If exports generate money on one hand, sinks consume it (and remove it from the system). All of the sinks are represented by town expenses. Town politicians will have opportunities to spend currency from the town's treasury, in exchange for substantially changing the state of the world.
Supply and Demand
Just like in the real world, much of the economy is driven by supply and demand. If you are unfamiliar with the concept, you may read up on it online. Demand refers to how much (quantity) of a product is desired by buyers. Supply represents how much the market can offer. As a trader, you want to sell goods when the overall demand is high (when people really want what you are selling), but also when the supply is low (when noone else is selling what you are).
Predicting supply changes ahead of time will allow you to estimate price changes before they happen. For example, if you believe famine is coming, it may be a good idea to stock up on food and sell it when everyone is hungry. On the other hand, if you have a pile of diamonds and a new diamond mine opens, it might be a good idea to sell before everyone has pockets full of diamonds.
