HOW TO MAKE EASY MONEY: MONETARY MARKET SPECULATION

Day 815, 04:07 • Published in United Kingdom United Kingdom • by Jazzaa
This article will show you how to make significant amounts of money on Erepublik, without owning a company, having a high skill level, or even doing one of those dodgy questionnarie things.

Speculating in the monetary market is entirely legal, and although being very risky, if you do it properly there is big money to be made from doing very little.

Important Initial Information

Unless currency or gold is needed immediately, it is better to sell rather than to buy. This is because the exchange rates fluctuate, and you hold a large amount of an unfavorable currency, there may never be a way out without loss.

In order to see the recommended exchange rates for a certain currency, make, then immediately remove, an offer for that currency. This opens an "account" for that currency, allowing you to see the exchange rate.

Methods Of Speculation

Scalping or Double Sell Method

This is the method used most in speculation and by myself. A profit is made from the difference in the Bid/Ask prices of the exchanges.

For example: YOU (the speculator) put up two offers in the currency market.

(Figures used are made up and not accurate to the actual monetary market)

(First Offer) 1. Selling 1 Gold for 100 GBP/GOLD
(Second Offer) 2. Selling 100 GBP for 0.014 GOLD/GBP

If both offers are successful, the speculator would have ended up with an extra 0.4 gold.

THE RISK - The risk for this method comes between the two sales. Market conditions may decrease profits or even result in a loss. For example, if you put an offer selling gold cheaply but then selling GBP cheaply too, you can end up selling only gold and having no-one buyin your GBP which means a loss, so be VERY careful, all offers must be thought through.

Double Buy Method

In the Double Buy Method either currency or gold is being sold at less than what it can be purchased at; this almost always indicates that the seller made a mistake (instead of selling, he should have purchased, or sold at a higher price).

(Figures used are made up and not accurate to the actual monetary market)

For Example: Person A: NOT YOU is selling 100 GBP at a rate of 0.02 GOLD/GBP
Person B: NOT YOU is selling 1 GOLD at a rate of 40 GBP/GOLD


Buying GBP from Person A gives a rate of 50 GBP/GOLD. Because Person B is selling at less than that, profit can be made from the difference in the rates by buying GOLD from Person B and trading it for GBP purchased from Person A.

The clever part of the Double Buy Method is that the undervalued offering can be repeatedly purchased using the proceeds of the purchase until it is gone. Anyone who has even a little money can take advantage of this. In this example, they can simply purchase gold from person B, then immediately purchase GBP from person A, then use the GBP to purchase gold again from person B until the offer is down.

This is an essentially risk free form of investing. As such, such occurrences are rare, as speculators roaming the monetary market tend to discover them and clear out the offer very quickly.

Buy-Sell Method

This method, combines some of the risk associated with the Double Sell method with the devaluing used in the Double Buy method. It is useful when, in order to profit, the devalued item must be re-sold rather than used in a purchase.

(Figures used are made up and not accurate to the actual monetary market)

For Example: GBP is selling at a rate of 0.02 GOLD/GBP
Person A is selling GBP at a rate of 1 USD/GBP
USD is selling at a rate of 0.016 GOLD/USD.

In this case USD is purchased with gold, then used to purchase GBP, and then resold for a profit. Such offers stem from a change in market conditions while the seller wasn't looking (GBP may have been selling at 0.014 GOLD/GBP earlier).

FOR ALL THREE METHODS, I WOULD RECCOMEND USING THIS TOOL TO HELP WITH CALCULATIONS

http://erepublik.ws/tools/currencies/

PLEASE VOTE AND SUBSCRIBE (Y)

Thanks,
Jazzaa