woensdag 9 januari 2013

Understanding the market

Eve's market can be difficult to understand for newbro's.
In this article I'll try to provide some clarity into how the market actually works.

Let's start off with some basics, just to make sure the groundwork is in place:
There are buy orders, and there are sell orders. A sell order is relatively simple, you have an item you don't want so you put it up for sale at a price you deem fair.
Someone buys the item, you get money. You don't actually get 100% of what you put the item up for sale for though.
First, there's transaction tax. This is a flat fee of 1.5% that is paid to 'the market'. This money does not go to any other players, and as such basically leaves EVE.
With the accounting skill, you can lower this tax to 0.75%, meaning you lose less money each transaction. If you spend much time using the market (I.E. you make a living as a trader) you will obviously want this skill maxed.

Second, there's the broker's fee. This is the fee you pay to place an order, which basically represents you as a capsuleer paying your broker to buy and/or sell goods for you. The calculation for the broker's fee is the following:




Simply put: The better your standings to the corporation owning the station that you're buying/selling in, the less you pay. The Broker Relations skill takes, at maximum, 25% off the amount you pay before standings come into play.

Long story short: When you sell an item, if you have neither of the trading skills outlined above trained and the corporation owning the station you sell/buy in does not have standings towards you, you lose 2.5% of the total selling price.
The broker's fee can be lowered as far as 0% with standings of 6.7 to faction and corporation and Broker Relations to 5, bringin the loss down to 1.5%. The Accounting skill can then lower the tax down to 0.75%, making your total loss 0.75%.


So now that taxes and fees and selling items is handled, let's look at buy orders.
Anyone can place a buy order for any item, at any price they desire. this is not indicative of the item's actual value in any way!
Example, I could put up a buy order for a Titan for 1 ISK. There is nothing preventing players from placing extreme, outrageous buy orders. When looking at what something is worth, don't look at buy orders. 9 times out of 10, buy orders are tools for traders to get an item cheap so they can then 'flip' the item, and resell it for a profit.
The entire station trading game revolves around this concept.

What a buy order is, is basically you handing money to your broker (When you place a buy order the money is withdrawn right away and put in 'escrow') and telling him to buy an X amount of Y for Z per unit.


So now that this distinction is in place, there's one last thing I want to cover, namely the interaction of buy and sell orders.
If you sell an item to a buy order, you always sell to the highest buy order.
Likewise, if you buy from a sell order, you always buy from the cheapest sell order, regardless how much you offer to pay.
This is best explained with an example:
I put up 10 Oracles in a sell order for 1 billion isk total. I'm the lowest priced Oracle on the market, so mine sell before any others. Someone comes in and buys 10 Oracles, but makes a typo and accidentally buys them for 10 billion isk in total.
What happens now is that he gets my 10 Oracles, because I'm the lowest seller, and I get his 10 billion ISK, because he wanted to pay 10 billion ISK for 10 Oracles, as far as the system is aware.
These mistakes happen more often than you'd realise, and are often the cause for great hilarity.


After reading all this, you should have a fairly decent understanding of how the market works in EVE. If you want to know more, there are many guides out there explaining every aspect in much more detail.

For now, fly safe and use the market well o/

-Ymir

Geen opmerkingen:

Een reactie posten