Trading: Difference between revisions

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Start small and reinvest and you will soon see your total isk grow very quickly. When you start to work in billions you can trade higher priced items which can increase your margins and also prices out some of the competition!

Skills:

====Station Trading Skills====

If you're going to be engaging in heavy station trading, you will be necessarily entering multiple buy and sell orders each and every day. For this reason, the biggest boost to your profitability per trade will be to reduce your transaction costs to the bare minimum. You do this by training Broker Relations and Accounting to 5, as soon as it's feasible.

[http://wiki.eveonline.com/en/wiki/Broker_Relations Broker Relations] - this skill reduces your cost to place orders on the market. The default broker fee is 1% of sale value, with a 100 ISK minimum. With each level of Broker Relations, you shave 5% off of that fee, with .75% being the lowest possible fee at level 5.

[http://wiki.eveonline.com/en/wiki/Accounting Accounting ] - this skill reduces your cost to settle sales transactions on the market. The default accounting fee is 1% of sale value. With each level of Accounting, you shave 10% off of that fee, with .5% being the lowest possible fee at level 5.

Early in your trading career, these fractional percentages have a minimum impact. As you build your average trading size per order, however, these reductions are quite meaningful. Let's look at the impact of having Broker Relations and Accounting Training to 5 for an intermediate trader (30+ days in):

''Example with Broker/Accounting skills trained to 4:''

You have Accounting and Broker Relations both trained to 4, giving you Broker fees of .80% and Accounting fees of .60% per transaction.

On Day 1, you enter buy orders totalling 300M ISK, not an uncommon amount once you've established yourself. The broker's fee for those orders = (300,000,000 x .80%) or 2.4M ISK. On Day 2, you have turned around and sold those goods for a total of 360,000,000. The accounting fee for those transactions = (360,000,000 x .6%) or 2.16M ISK. Of your 60M in gross profit, you net 55.44M. While your transactions costs look small on paper at .80% and .60%, respectively, your total transactions costs eat up 7.6% of your profits!

''Example with fully trained Broker/Accounting skills:''

On Day 1, you enter buy orders totalling 300M ISK. The broker's fee for those orders = (300,000,000 x .75%) or 2.25M ISK. On Day 2, you have turned around and sold those goods for a total of 360,000,000. The accounting fee for those transactions = (360,000,000 x .5%) or 1.8M ISK. Of your 60M in gross profit, your net is 55.95M. On that day's trades, you have put another 500,000 ISK in your pocket for doing no additional work, all because you took the hit and trained both skills to 5. Accordingly, your total transaction costs now total 6.75% of your profits - '''an 11% increase in profitability''!

As you can imagine, pulling an extra 500K in ISK a day out of your trades will add up to substantial sums over time - it's like getting an extra Rifter as a bonus! As your trade volume grows, these skills become increasingly critical and the extra ISK gets into the tens of millions per month.

Other skills you'll want to familiarize yourself with include:

*[http://wiki.eveonline.com/en/wiki/Trade Trade], [http://wiki.eveonline.com/en/wiki/Retail Retail], [http://wiki.eveonline.com/en/wiki/Wholesale Wholesale] and [http://wiki.eveonline.com/en/wiki/Tycoon Tycoon]: These skills increase the number of market open orders you may have.

*[http://wiki.eveonline.com/en/wiki/Procurement Procurement], [http://wiki.eveonline.com/en/wiki/Marketing Marketing], [http://wiki.eveonline.com/en/wiki/Daytrading Daytrading] and [http://wiki.eveonline.com/en/wiki/Visibility Visibility ]: These skills allow you to buy, sell and modify orders in stations other than your current one. Note: With these skills each trained to level 2, you can station trade in Hek while docked in Aldrat.

*[http://wiki.eveonline.com/en/wiki/Margin_Trading Margin Trading]: This skill allows you to reduce the amount of escrow required when putting in a buy order, effectively letting you place buy orders for more money then you actually have.

*[http://wiki.eveonline.com/en/wiki/Broker_Relations Broker Relations] and [http://wiki.eveonline.com/en/wiki/Accounting Accounting ]: These skills reduce the cost associated with placing and executing orders.

*[http://wiki.eveonline.com/en/wiki/Social Social], [http://wiki.eveonline.com/en/wiki/Connections Connections] - Increases your standing so you pay less taxation.

@@ Line 62: / Line 62: @@
 Start small and reinvest and you will soon see your total isk grow very quickly. When you start to work in billions you can trade higher priced items which can increase your margins and also prices out some of the competition!
-Skills:
+====Station Trading Skills====
+If you're going to be engaging in heavy station trading, you will be necessarily entering multiple buy and sell orders each and every day.  For this reason, the biggest boost to your profitability per trade will be to reduce your transaction costs to the bare minimum.  You do this by training Broker Relations and Accounting to 5, as soon as it's feasible.
+[http://wiki.eveonline.com/en/wiki/Broker_Relations Broker Relations] - this skill reduces your cost to place orders on the market.  The default broker fee is 1% of sale value, with a 100 ISK minimum.  With each level of Broker Relations, you shave 5% off of that fee, with .75% being the lowest possible fee at level 5.
+[http://wiki.eveonline.com/en/wiki/Accounting Accounting ] - this skill reduces your cost to settle sales transactions on the market.  The default accounting fee is 1% of sale value. With each level of Accounting, you shave 10% off of that fee, with .5% being the lowest possible fee at level 5.
+Early in your trading career, these fractional percentages have a minimum impact.  As you build your average trading size per order, however, these reductions are quite meaningful.  Let's look at the impact of having Broker Relations and Accounting Training to 5 for an intermediate trader (30+ days in):
+''Example with Broker/Accounting skills trained to 4:''
+You have Accounting and Broker Relations both trained to 4, giving you Broker fees of .80% and Accounting fees of .60% per transaction.
+On Day 1, you enter buy orders totalling 300M ISK, not an uncommon amount once you've established yourself.  The broker's fee for those orders = (300,000,000 x .80%) or 2.4M ISK.  On Day 2, you have turned around and sold those goods for a total of 360,000,000.  The accounting fee for those transactions = (360,000,000 x .6%) or 2.16M ISK.  Of your 60M in gross profit, you net 55.44M.  While your transactions costs look small on paper at .80% and .60%, respectively, your total transactions costs eat up 7.6% of your profits!
+''Example with fully trained Broker/Accounting skills:''
+On Day 1, you enter buy orders totalling 300M ISK.  The broker's fee for those orders = (300,000,000 x .75%) or 2.25M ISK.  On Day 2, you have turned around and sold those goods for a total of 360,000,000.  The accounting fee for those transactions = (360,000,000 x .5%) or 1.8M ISK.  Of your 60M in gross profit, your net is 55.95M.  On that day's trades, you have put another 500,000 ISK in your pocket for doing no additional work, all because you took the hit and trained both skills to 5.  Accordingly, your total transaction costs now total 6.75% of your profits - '''an 11% increase in profitability''!
+As you can imagine, pulling an extra 500K in ISK a day out of your trades will add up to substantial sums over time - it's like getting an extra Rifter as a bonus!  As your trade volume grows, these skills become increasingly critical and the extra ISK gets into the tens of millions per month.
+Other skills you'll want to familiarize yourself with include:
 *[http://wiki.eveonline.com/en/wiki/Trade Trade], [http://wiki.eveonline.com/en/wiki/Retail Retail], [http://wiki.eveonline.com/en/wiki/Wholesale Wholesale] and [http://wiki.eveonline.com/en/wiki/Tycoon Tycoon]: These skills increase the number of market open orders you may have.
 *[http://wiki.eveonline.com/en/wiki/Procurement Procurement], [http://wiki.eveonline.com/en/wiki/Marketing Marketing], [http://wiki.eveonline.com/en/wiki/Daytrading Daytrading] and [http://wiki.eveonline.com/en/wiki/Visibility Visibility ]: These skills allow you to buy, sell and modify orders in stations other than your current one. Note: With these skills each trained to level 2, you can station trade in Hek while docked in Aldrat.
 *[http://wiki.eveonline.com/en/wiki/Margin_Trading Margin Trading]: This skill allows you to reduce the amount of escrow required when putting in a buy order, effectively letting you place buy orders for more money then you actually have.
-*[http://wiki.eveonline.com/en/wiki/Broker_Relations Broker Relations] and [http://wiki.eveonline.com/en/wiki/Accounting Accounting ]: These skills reduce the cost associated with placing and executing orders.
 *[http://wiki.eveonline.com/en/wiki/Social Social], [http://wiki.eveonline.com/en/wiki/Connections Connections] - Increases your standing so you pay less taxation.