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You are reading an article written by a citizen of eRepublik, an immersive multiplayer strategy game based on real life countries. Create your own character and help your country achieve its glory while establishing yourself as a war hero, renowned publisher or finance guru.

A Brief Lesson in Arbitrage (South)

Day 1,490, 14:59 • Published in United Kingdom USA

• by Peregrine

So, I'm not really here to be a professor, but when the opportunity presents itself I have no problem providing a bit of a lesson. Today's lesson is a quickie, in that most fascinating (lol) of financial operations: Arbitrage.

Arbitrage occurs when a seller wishes to unload something (be it cattle or stock or erepublik gold), and when it is more important to the seller that they complete the sale quickly than that they get the absolute best price for what they are selling.

An arbitrage broker, being somewhat more patient, will pay the heavily reduced price asked for by the seller and will reprice it to the actual market price - allow the market to snap it up more slowly.

I have no idea who Arbitrage South is, but the name is somewhat ironic in that it seems to be working to enable Arbitrage - not profit from it. That said, this is a visual example of a moment's arbitrage from just now. In fact, if you're quick, you can probably jump in yourself and pick up some gold at more than a 6% discount - if that's your cuppa tea.

Comments

Dishmcds Day 1,490, 15:15

iirc, Arbitrage South is actually the Bank of England, doing what it can to set a benchmark for each side of currency. There is also East/West/North, I think.

Publius Day 1,490, 15:50

Also be aware of the 10G/day limit when MM trading.

Tomazim Day 1,490, 16:09

What dishmcds said, I think south is the one I used to use

Peregrine Day 1,490, 16:37

Good to know, and thanks for your comments. The 10G/day limit is new since my departure, and is a good thing to know.

Gnashead Day 1,491, 13:55

Vote and subscribe, rather informative.

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