How do you use the Monetary Market?

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How do you use the Monetary Market?

Post by GChrome on Thu Jun 11, 2009 6:32 pm

I need some instructions to use the Monetary Market, just decided I should try to earn more gold/money.
I get the concept of it: buy low, sell high (I think lol)
but buy what? And sell what?
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Re: How do you use the Monetary Market?

Post by Archaean on Thu Jun 11, 2009 10:27 pm

The typical strategy available is "Sell/Sell" with the same currency pair (mostly something paired with Gold). Let's take CAD/Gold as an example:

If you sell 90 CAD at .034Gold/CAD, you end up with 3.06 gold
If you then sell that 3.06 Gold for CAD at 30CAD/Gold, you end up with 91.8

This nets a profit of 1.8CAD, or 2% ROI. Taking the lowest CAD/Gold offer and multiplying it by the lowest Gold/CAD offer gives you the spread, or profit in percentage.

This is not a risk-free strategy, particularly when spreads are thin. For example, if you've just sold your Gold for CAD at 30, and CAD falls from 0.034 to 0.032, you've lost 4%. Just this week, the CAD went from 0.034 to as high as 0.038 -- an 11% increase, and a proportional decrease in the value of your Gold holdings.

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Re: How do you use the Monetary Market?

Post by GChrome on Thu Jun 11, 2009 10:47 pm

I don't get the numbers...?


Can you actually show me the multiplication/addition/subtraction etc. I just don't get the numbers (and the numbers are the biggest thing Razz)
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Re: How do you use the Monetary Market?

Post by Archaean on Fri Jun 12, 2009 8:04 pm

I took the numbers from the Canadian money market.

If you offer 90 CAD at 0.034 Gold/CAD, then 90 * 0.034 = 3.06 Gold.
If you offer 3.06 gold at 30CAD/Gold, then 3.06 * 30 = 91.8 CAD

1.8 / 90 = 0.02, or 2% profit. You can also calculate the profit in the above example as: 1 - (0.034 * 30)

I hope this helps.

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Re: How do you use the Monetary Market?

Post by GChrome on Sun Jun 14, 2009 10:09 pm

Archaean wrote:

1.8 / 90 = 0.02, or 2% profit. You can also calculate the profit in the above example as: 1 - (0.034 * 30)



Where did you get the 1.8 from? And the 90?
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Re: How do you use the Monetary Market?

Post by David Letang on Mon Jun 15, 2009 12:31 am

90 is the starting CAD and the 1.8 is how much CAD you made. divide to find to find your profit in percentages.
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Re: How do you use the Monetary Market?

Post by GChrome on Mon Jun 15, 2009 1:01 pm

Hmmm... I still don't get it, can someone make a step by step guide with screenshots?
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Re: How do you use the Monetary Market?

Post by frankypicoto on Tue Jun 16, 2009 8:17 am

lol GChrome I think you're not very good with maths (don't worry I don't get it either) Razz
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Re: How do you use the Monetary Market?

Post by GChrome on Tue Jun 16, 2009 1:32 pm

lol, nah I'm the best in math in my homeroom, but what I don't get is what do you buy or sell first? And how long will it take? What what is the most safest and most profitable way?
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Re: How do you use the Monetary Market?

Post by Hanu Anand on Tue Jun 16, 2009 1:56 pm

ah im a experienced Monetary Market user. There is no risk free way. Im writing a guide for help but it will still take some time
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Re: How do you use the Monetary Market?

Post by Dade Pendwyn on Tue Jun 16, 2009 4:28 pm

GChrome, check out my FAQ. Questino 3F. If that still doesn't make sense I'll try describing it here in different words.
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Re: How do you use the Monetary Market?

Post by frankypicoto on Wed Jun 17, 2009 5:33 am

Oh ok I just thought you weren't good with maths Razz
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Re: How do you use the Monetary Market?

Post by Books on Wed Jun 17, 2009 11:34 am

Perhaps a simpler strategy for now would be a buy-and-hold approach. But to do this you need to watch the markets and know what currency is going to do what.

For example: Germany was taken over by Sweden a few weeks back. Their currency, the DEM, became super cheap to buy. (What was it? 1DEM =0.017 or 0.016. Something like that).

That means that at that time if you bought DEM off the market you would own it at the price of 1DEM =0.017g. (aka 1 g= 58.82DEM) If you held on to your DEM for a long time and then all of a sudden the DEM goes up (due to any number of factors: Germany getting their land back and their MPP's and new German companies starting in Germany using the DEM) you would make money. Your DEM you bought at 0.017g is now worth (for the argument) 0.02 g.

So if you spent 1 g to buy DEM at 0.017 you'd have 58.82 DEM. If you sold all that DEM at 0.02 you would have (58.82 * 0.02) 1.176g.

So if you keep your finger on the pulse of the market and do a buy and hold you can make money.

Consequently, you can also lose money, like if the DEM keeps dropping to 0.016, 0.015 etc. Then you go crazy.

If you combine this strategy plus the buy and sell that your fellow citizens have outlined above, you can make money for sure
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Re: How do you use the Monetary Market?

Post by GChrome on Wed Jun 17, 2009 2:11 pm

Books wrote:Perhaps a simpler strategy for now would be a buy-and-hold approach. But to do this you need to watch the markets and know what currency is going to do what.

For example: Germany was taken over by Sweden a few weeks back. Their currency, the DEM, became super cheap to buy. (What was it? 1DEM =0.017 or 0.016. Something like that).

That means that at that time if you bought DEM off the market you would own it at the price of 1DEM =0.017g. (aka 1 g= 58.82DEM) If you held on to your DEM for a long time and then all of a sudden the DEM goes up (due to any number of factors: Germany getting their land back and their MPP's and new German companies starting in Germany using the DEM) you would make money. Your DEM you bought at 0.017g is now worth (for the argument) 0.02 g.

So if you spent 1 g to buy DEM at 0.017 you'd have 58.82 DEM. If you sold all that DEM at 0.02 you would have (58.82 * 0.02) 1.176g.

So if you keep your finger on the pulse of the market and do a buy and hold you can make money.

Consequently, you can also lose money, like if the DEM keeps dropping to 0.016, 0.015 etc. Then you go crazy.

If you combine this strategy plus the buy and sell that your fellow citizens have outlined above, you can make money for sure


You could play it like in a real stock market? You buy when it's low and hold it. And then sell it in it goes down...?
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Re: How do you use the Monetary Market?

Post by Dade Pendwyn on Wed Jun 17, 2009 4:00 pm

Don't do that. It'll take forever, you'll make far less money and there's actual risk involved.
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Re: How do you use the Monetary Market?

Post by David Letang on Wed Jun 17, 2009 4:59 pm

i prefer the sell/sell method. i've made close to 15g this week with 8 gold to start. gotta be careful though, because a big fluctuation could have you waiting days for the market to stabilize, or ruefully taking a loss to try your luck somewhere else.
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Re: How do you use the Monetary Market?

Post by GChrome on Wed Jun 17, 2009 9:13 pm

So... What do I do exactly? As in a step by step guide. I really still don't get it... Embarassed
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Re: How do you use the Monetary Market?

Post by David Letang on Wed Jun 17, 2009 9:56 pm

first, you have to find a profitable market.
in the money market check out the price to buy the currency with gold. note it. then, check the price to buy gold with that same currency (switch them in the buy/sell options). multiply those two numbers together. if you move the decimal over two places, you will get a percent profit, 100% being breaking even, 99.9999% and under being a loss, and 100.0001 and up being a gain.
as far as i've seen on the forums and through experience, anything less than 103%-104% is pretty much a waste of time because it will take you quite a while to build up a decent profit and a minor fluctuation could eff up your whole day.
next, you take whatever amount of gold you want to invest and sell it at a price equal to the lowest on the market. i usually do it in blocks of 4-7g so people aren't so tempted to under cut it.
once that gold starts selling, put the currency you get from it back on the market, selling it for gold. i usually do this in bulk, because that side of the market doesn't usually fluctuate too much.
rinse and repeat.

it took me a while to figure out the calculations and fluctuations and whatnot, but it just takes experience. after repeating the process 5 or 6 times you'll get the hang of it.
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Re: How do you use the Monetary Market?

Post by GChrome on Thu Jun 18, 2009 7:51 am

David Letang wrote:first, you have to find a profitable market.
in the money market check out the price to buy the currency with gold. note it. then, check the price to buy gold with that same currency (switch them in the buy/sell options). multiply those two numbers together. if you move the decimal over two places, you will get a percent profit, 100% being breaking even, 99.9999% and under being a loss, and 100.0001 and up being a gain.
as far as i've seen on the forums and through experience, anything less than 103%-104% is pretty much a waste of time because it will take you quite a while to build up a decent profit and a minor fluctuation could eff up your whole day.
next, you take whatever amount of gold you want to invest and sell it at a price equal to the lowest on the market. i usually do it in blocks of 4-7g so people aren't so tempted to under cut it.
once that gold starts selling, put the currency you get from it back on the market, selling it for gold. i usually do this in bulk, because that side of the market doesn't usually fluctuate too much.
rinse and repeat.


it took me a while to figure out the calculations and fluctuations and whatnot, but it just takes experience. after repeating the process 5 or 6 times you'll get the hang of it.


So once you have gold, you sell it, then the currency you get from that, you sell it for gold?


And what if the market fluctuates while your doing it? Or the market doesn't change that fast?
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Re: How do you use the Monetary Market?

Post by David Letang on Thu Jun 18, 2009 4:37 pm

exactly.
the reason i say to sell the gold in small chunks is to avoid large fluctuations in that market, because that's where it will happen. currencies tend to be pretty stable, so you can sell them in bulk.
it does take a while for the turnaround... you'll probably only get to flip it 2 or 3 times a day, and that's only if you're paying close attention. that's why i suggest putting the currency back on the market as soon as your gold starts selling.
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