The new face of trading

Day 1,229, 04:31 • Published in United Kingdom United Kingdom • by John Sykes

Dear readers,

It has been a long, long time since I last wrote an article. The so called 'improved' economy module however has prompted me to come out of my cave and bore you to death once more.

As those who have been reading this paper since its inception know, my main focus in this game was speculating on currency movements. While it is possible to circumvent the 10G rule by using multiple organisations, this trick is only temporary.

So what choice do we have?

First, making markets in currency-to-currency (C2C) markets seems the easiest path. By this I mean for instance selling GBP for FRF and FRF for GBP collecting a premium called spread. However, while these markets reward the courageous trader, their illiquidity (little buying power) can leave one with their pants down, holding foreign currency that is costly to convert back.

The second option is to run a strategy called arbitrage. To do so, one would compute the price in gold of two currencies and then check whether the C2C exchange rate is the same as the gold to gold rate.

Let me explain with an example. Say 1G = 120GBP and 1G = 125FRF and 1GBP = 0.95FRF. This means that by selling 1G for GBP, one would then have 120GBP in their account. By buying FRF with these pounds, one would have 120/0.95 = 126FRF. However, the sticky issue of the 10G limit still applies when trying to sell the FRF back.

The third options, which most of you will have all ready thought of, is to trade commodities. This requires a license or to move around a fair bit.

The last option is to trade companies. The added benefit to this is that this is a great way to transfer as much gold as you like from one (multi) account to another.

In short, trading as a profession is either screwed or very risky.

I would like to thank the admins for turning a good game into a master mind of mediocrity!