Post by Justinious on Sept 5, 2008 13:38:46 GMT -5
www.erepublik.com/article-606382.html
Hello everyone. As I had promised some time ago, I have been working on a few tutorials and i'd like to show them all to you. The following tutorial is on the monetary exchange it serves as a basic how-to guide and a simple tutorial. Note : I am not claiming this to be the best way or the only way. Simply a way that works for me that I think will benefit everyone by knowing
The Monetary Exchange :: A Quick Guide
If you have been in erepublik for any length of time I am certain you have come across the "Exchange Money" button under the Economy Tab. At first glance this page can be both confusing, and intimidating. However, in reality there is nothing to it and once you grasp the basics of it you will be able to easily exchange local and foreign currency for gold as well as make a small profit for yourself. I will go over the basic rules of the monetary exchange, a few things you cannot do, a few things to avoid, and a few methods for working the exchange in your favor.
What is the Monetary Exchange Market For ?
As I stated above the Monetary Exchange Market is the only way for citizens to exchange money to and from Gold. If you have a large amount of Currency that you have acquired either from work, a lottery, or military pay. You may want to turn that into Gold. The Gold can then be used to invest in other companies, banks, or Political Parties. In most cases having some Gold saved just in case is always best.
Now the monetary exchange will show you the currency of every country in the world, and allow you to choose which currency (or Gold) you'd like to exchange it with. The Following is just a few assorted Tips for the Monetary Market.
- Tips -
1) You Cannot Buy Currency that you do not have an account in. The only way to get an account in another country's currency is to either move there or export there.
2) Although you can sell a currency for another. You will almost never find anyone who is actively trading one currency for another and as such it is best to stick to gold/currency transfers
3) The Erepublik Recommended Exchange Rate is inaccurate 90% of the time and should not be trusted when buying or selling anything on the market. The Recommended Exchange Rate is an average of all the offers currently up and some additional factors that are unknown to me currently. Because every country has citizens who post offers with a ridiculous exchange rate, the true exchange rate is often different from the recommended one.
- Method One :: The Buyer's Market -
The obvious first choice for anyone wanting to work the market is to buy currency or Gold. There is no faster way to convert currency into Gold or vice versa, than to just buy from an offer in the market. This is where you buy low on one exchange and buy on a higher one. Examples are always fun,
You go to the monetary exchange and see that most currency is selling at around .020 Gold = 1 USD. You then notice someone has decided to sell their currency for .019 Gold = 1 USD. Because at this lower exchange rate you are saving yourself .20 Gold! on a transaction of 200USD. lol now I wont lie, thats not a lot of Gold, but if you were to buy 1000 USD at this exchange rate versus the normal rate of .020 you would be saving yourself 1 Gold. Now here is when things get good. Remember the average exchange rate of .020 Gold = 1 USD? Well now if you change the filter for selling Gold for USD we can see that 1 Gold = ~50 USD. Now you will notice there is a LOT of variation on this page. This is because this is where people make their money for both buying and selling. Now remember that we bought 1000USD for 19Gold before, so if we buy Gold at 1g=50usd rate we will be making a profit. we will get back 20 Gold (which is that one Gold we saved from before and is now profit).
Without going into further detail that is how profiting off the market by buying will turn you a profit. Of course this is the market where waiting for the ideal moment is crucial. Big profits can be made instantly, but this normally requires a large amount of currency to start with, and the ability to take some risks. As with anything that promises big rewards the risks can be just as big. If someone was to rush in and make a few wrong decisions they could lose just as much as they stood to gain. Remember: That the market is always in a state of fluctuation. If seems to good to be true, is just might, so be careful. My advice is to start off with small amounts and work your way up to larger once you have your footing.
- Method Two :: The Seller's Market -
The Sellers Market is a much safer route to take than the buyers market, but suffers from a few obvious and understandable draw backs. These are the Pros and Cons of the Sellers Market :
-Pros-
1) Is considerably less risky than the buyers market
2) Allows the seller nearly all control off the price and profit they make
3) If market values shift a seller can cancel their offer
-Cons-
1) Much Slower than the buyers market
2) Miscalculations could cause just as much damage as the buyers market if not noticed quickly
3) Requires both pre watching of the market and active analysis to ensure a profit
The Sellers Market is slower normally taking 1-3 days to sell an entire offer, but it could never sell if the market is in an inactive slump. This could be considered more of the business owners method as it takes a much higher start up and access to both currency and Gold funds, to make a profit in this market. So Lets run our favorite example again.
So you notice that the average exchange rate is around .021 = 1USD, and you decide to make a profit off of this. You then realize if you were to put up 300USD for sale at .020G = 1USD you will be sure to sell your goods faster than anyone else. To ensure you make a quick return and a profit you also place an offer for sale on the inverse side of the market. You place 6 GOLD for sale at the exchange rate of 1Gold = 53USD. With this set up you will make 18USD or 1/3 or a Gold. You might think that isn't much, but last i checked 18USD is a pretty nice salary for anyone ^__^ so making that much per day or several times a day, if you can play the markets, can be very profitable.
- Method Three :: The Playa's Market (or Futures Market) -
Yes I named this The "playa's" market to be funny, but moving along. The Playa's Market is where you both buy and sell to make a profit. This is the classic "Buy low and Sell High" scenario. The people who work the Playa's Market normally have a large amount of money, some experience working the market, and the brawn to take risks and ride on their own assumptions. This Market can have the biggest rewards, but also has the biggest risks, as you are playing the future of the market, more than the immediacy of the market. This type of market has been associated with inside trading, but in most cases the market is harder to predict from the inside then by watching it as an outside influence. I dont think another Example is really needed.
Wrap up and Special Cases in the Market
Special Case 1 :: Governmental Management
This happens very often in most countries and even in the US our good presidents have taken an active role in securing our Exchange rate. If left unchecked the exchange rate will continue to go up in value idefinetally. The problem this causes people who wish to work the monetary exchange is that it basically puts a cap on how high you can sell your USD or GOLD. Because if your 300 USD is being under cut by 10,000USD the chances are noone will buy yours. I normally suggest waiting until the federal reserve has finished its correction of the market before attempting again.
Special Case 2 :: The Market Buyout
Now this has the exact opposite effect on the market as the Government Management. In nearly every case of A Market Buyout the exchange rate jump up a few points. This happens when an individual or corporation decides they want to throw their money around and take advantage of the market and make a substantial Profit. Normally the company or corporate entity will buy up every offer currently on the market and then re sell it for an exchange rate which is much higher than one which they bought it for. I normally try to either beat them at their own game or wait until they are done screwing with our exchange rates before I go back to selling and buying.
A Few Things To Point Out
1. All of these methods I have posted are relatively safe if you do the numbers, but have a low rate of return. You can normally expect to repeat them several times before making any substantial amount of money. No matter which market you prefer.
2. You can also reverse the order in which you buy/sell/etc to earn gold after each turn instead of USD.
3. I am not claiming that these are the Only way. I am simply supplying the way I chose to run things and decide to pass the knowledge on.
4. I made a short video below to help explain everything quickly. The Video is just a basic summary of this article. I never notice how annoying I sound till i edit a video with my own voice in it
If you want to make sure you always profit from a buy and a sell do this.
Guaranteed this Formula will always work for you
(( A * E ) = G ( * AU = P ))
A = Amount of USD you are selling or wish to purchase with
E = The Exchange rate you are selling/buying at
G = Gold Acquired from this transaction
AU= Amount of USD per GOLD to receive the original amount invested
P = All the Profits you could ever want.
Now to make that a little simpler for you, here you go
((225 * .020) = 4.5 (* 50 = 225))
Now you can see that if you sell your gold for an amount higher than 50USD per gold you are making a profit.
Now just reverse this accordingly for buying.
Well thats all for this tutorial, its been a long time in coming. Thank you for putting up with its length and the amount of time it took it to get you. I hope everyone finds this informative and it helps you better understand the workings of the monetary market. I might take down the youtube video i'll decide tomorrow, or atleast re shoot it when I have more time. Doing video tutorials at 4am isn't really recommended, lol. If you can see any area that needs correcting, fine tuning, or you see any typos let me know. Thank you, As always Vote, Comment, Subscribe. Until next time
- Justinious -
Vice President of the United States of America
Party President of The United Constitutionalists Party
Hello everyone. As I had promised some time ago, I have been working on a few tutorials and i'd like to show them all to you. The following tutorial is on the monetary exchange it serves as a basic how-to guide and a simple tutorial. Note : I am not claiming this to be the best way or the only way. Simply a way that works for me that I think will benefit everyone by knowing
The Monetary Exchange :: A Quick Guide
If you have been in erepublik for any length of time I am certain you have come across the "Exchange Money" button under the Economy Tab. At first glance this page can be both confusing, and intimidating. However, in reality there is nothing to it and once you grasp the basics of it you will be able to easily exchange local and foreign currency for gold as well as make a small profit for yourself. I will go over the basic rules of the monetary exchange, a few things you cannot do, a few things to avoid, and a few methods for working the exchange in your favor.
What is the Monetary Exchange Market For ?
As I stated above the Monetary Exchange Market is the only way for citizens to exchange money to and from Gold. If you have a large amount of Currency that you have acquired either from work, a lottery, or military pay. You may want to turn that into Gold. The Gold can then be used to invest in other companies, banks, or Political Parties. In most cases having some Gold saved just in case is always best.
Now the monetary exchange will show you the currency of every country in the world, and allow you to choose which currency (or Gold) you'd like to exchange it with. The Following is just a few assorted Tips for the Monetary Market.
- Tips -
1) You Cannot Buy Currency that you do not have an account in. The only way to get an account in another country's currency is to either move there or export there.
2) Although you can sell a currency for another. You will almost never find anyone who is actively trading one currency for another and as such it is best to stick to gold/currency transfers
3) The Erepublik Recommended Exchange Rate is inaccurate 90% of the time and should not be trusted when buying or selling anything on the market. The Recommended Exchange Rate is an average of all the offers currently up and some additional factors that are unknown to me currently. Because every country has citizens who post offers with a ridiculous exchange rate, the true exchange rate is often different from the recommended one.
- Method One :: The Buyer's Market -
The obvious first choice for anyone wanting to work the market is to buy currency or Gold. There is no faster way to convert currency into Gold or vice versa, than to just buy from an offer in the market. This is where you buy low on one exchange and buy on a higher one. Examples are always fun,
You go to the monetary exchange and see that most currency is selling at around .020 Gold = 1 USD. You then notice someone has decided to sell their currency for .019 Gold = 1 USD. Because at this lower exchange rate you are saving yourself .20 Gold! on a transaction of 200USD. lol now I wont lie, thats not a lot of Gold, but if you were to buy 1000 USD at this exchange rate versus the normal rate of .020 you would be saving yourself 1 Gold. Now here is when things get good. Remember the average exchange rate of .020 Gold = 1 USD? Well now if you change the filter for selling Gold for USD we can see that 1 Gold = ~50 USD. Now you will notice there is a LOT of variation on this page. This is because this is where people make their money for both buying and selling. Now remember that we bought 1000USD for 19Gold before, so if we buy Gold at 1g=50usd rate we will be making a profit. we will get back 20 Gold (which is that one Gold we saved from before and is now profit).
Without going into further detail that is how profiting off the market by buying will turn you a profit. Of course this is the market where waiting for the ideal moment is crucial. Big profits can be made instantly, but this normally requires a large amount of currency to start with, and the ability to take some risks. As with anything that promises big rewards the risks can be just as big. If someone was to rush in and make a few wrong decisions they could lose just as much as they stood to gain. Remember: That the market is always in a state of fluctuation. If seems to good to be true, is just might, so be careful. My advice is to start off with small amounts and work your way up to larger once you have your footing.
- Method Two :: The Seller's Market -
The Sellers Market is a much safer route to take than the buyers market, but suffers from a few obvious and understandable draw backs. These are the Pros and Cons of the Sellers Market :
-Pros-
1) Is considerably less risky than the buyers market
2) Allows the seller nearly all control off the price and profit they make
3) If market values shift a seller can cancel their offer
-Cons-
1) Much Slower than the buyers market
2) Miscalculations could cause just as much damage as the buyers market if not noticed quickly
3) Requires both pre watching of the market and active analysis to ensure a profit
The Sellers Market is slower normally taking 1-3 days to sell an entire offer, but it could never sell if the market is in an inactive slump. This could be considered more of the business owners method as it takes a much higher start up and access to both currency and Gold funds, to make a profit in this market. So Lets run our favorite example again.
So you notice that the average exchange rate is around .021 = 1USD, and you decide to make a profit off of this. You then realize if you were to put up 300USD for sale at .020G = 1USD you will be sure to sell your goods faster than anyone else. To ensure you make a quick return and a profit you also place an offer for sale on the inverse side of the market. You place 6 GOLD for sale at the exchange rate of 1Gold = 53USD. With this set up you will make 18USD or 1/3 or a Gold. You might think that isn't much, but last i checked 18USD is a pretty nice salary for anyone ^__^ so making that much per day or several times a day, if you can play the markets, can be very profitable.
- Method Three :: The Playa's Market (or Futures Market) -
Yes I named this The "playa's" market to be funny, but moving along. The Playa's Market is where you both buy and sell to make a profit. This is the classic "Buy low and Sell High" scenario. The people who work the Playa's Market normally have a large amount of money, some experience working the market, and the brawn to take risks and ride on their own assumptions. This Market can have the biggest rewards, but also has the biggest risks, as you are playing the future of the market, more than the immediacy of the market. This type of market has been associated with inside trading, but in most cases the market is harder to predict from the inside then by watching it as an outside influence. I dont think another Example is really needed.
Wrap up and Special Cases in the Market
Special Case 1 :: Governmental Management
This happens very often in most countries and even in the US our good presidents have taken an active role in securing our Exchange rate. If left unchecked the exchange rate will continue to go up in value idefinetally. The problem this causes people who wish to work the monetary exchange is that it basically puts a cap on how high you can sell your USD or GOLD. Because if your 300 USD is being under cut by 10,000USD the chances are noone will buy yours. I normally suggest waiting until the federal reserve has finished its correction of the market before attempting again.
Special Case 2 :: The Market Buyout
Now this has the exact opposite effect on the market as the Government Management. In nearly every case of A Market Buyout the exchange rate jump up a few points. This happens when an individual or corporation decides they want to throw their money around and take advantage of the market and make a substantial Profit. Normally the company or corporate entity will buy up every offer currently on the market and then re sell it for an exchange rate which is much higher than one which they bought it for. I normally try to either beat them at their own game or wait until they are done screwing with our exchange rates before I go back to selling and buying.
A Few Things To Point Out
1. All of these methods I have posted are relatively safe if you do the numbers, but have a low rate of return. You can normally expect to repeat them several times before making any substantial amount of money. No matter which market you prefer.
2. You can also reverse the order in which you buy/sell/etc to earn gold after each turn instead of USD.
3. I am not claiming that these are the Only way. I am simply supplying the way I chose to run things and decide to pass the knowledge on.
4. I made a short video below to help explain everything quickly. The Video is just a basic summary of this article. I never notice how annoying I sound till i edit a video with my own voice in it
If you want to make sure you always profit from a buy and a sell do this.
Guaranteed this Formula will always work for you
(( A * E ) = G ( * AU = P ))
A = Amount of USD you are selling or wish to purchase with
E = The Exchange rate you are selling/buying at
G = Gold Acquired from this transaction
AU= Amount of USD per GOLD to receive the original amount invested
P = All the Profits you could ever want.
Now to make that a little simpler for you, here you go
((225 * .020) = 4.5 (* 50 = 225))
Now you can see that if you sell your gold for an amount higher than 50USD per gold you are making a profit.
Now just reverse this accordingly for buying.
Well thats all for this tutorial, its been a long time in coming. Thank you for putting up with its length and the amount of time it took it to get you. I hope everyone finds this informative and it helps you better understand the workings of the monetary market. I might take down the youtube video i'll decide tomorrow, or atleast re shoot it when I have more time. Doing video tutorials at 4am isn't really recommended, lol. If you can see any area that needs correcting, fine tuning, or you see any typos let me know. Thank you, As always Vote, Comment, Subscribe. Until next time
- Justinious -
Vice President of the United States of America
Party President of The United Constitutionalists Party