The Off-Topic investing challenge!
- Thread starter Hygro
- Start date
Edgar Allan Bro
Chieftain
Today's looking good for me so far, save for the fact I can't access the site. Runtime error!
Same here, I get a 500 error.
Hygro
soundcloud.com/hygro/
well quit whinin' I'm down like 15,000 today 
jtb1127
Deity
So far I am up $500
pob
Deity²
- Joined
- Sep 10, 2010
- Messages
- 396
Is there any way to get around the volume rule? I want to cover one of my shorts, but I can't because it just isn't being traded at all in real life. It's earnt as much as it is likely to (12.5%) so now it's just left sitting in my portfolio as a liability.
amadeus
Serenity now
Link to video.
I don't think there is. Just cover as many as you can, I guess. I'm doing that with a yen ETF right now that isn't going anywhere.
pob
Deity²
- Joined
- Sep 10, 2010
- Messages
- 396
"Currently, a maximum of 3 shares can be traded due to the game's volume rule."
Would I be able to sell them if I had a margin call?
Edgar Allan Bro
Chieftain
I'm up about $18K. Perhaps if/when I get back up to the line of scrimmage I'll start exploring something more advanced than (attempting to) "buy low, sell high".
Edgar Allan Bro
Chieftain
This is annoying. Anyone know of any way I can get through this? Nothing on the site is working for me. 
Spoiler :
GoodGame
Red, White, & Blue, baby!
- Joined
- Dec 17, 2004
- Messages
- 13,725
The site is a little bit fudgey. Just keep clicking stuff. If you can't get back to the game go to Simulators-> game.
Most of the stocks are rebounding today, though Rand Gold is down. I guess people dumped stock yesterday, stashed in gold, then dumped gold when the market looked like it was rebounding.
Most of the stocks are rebounding today, though Rand Gold is down. I guess people dumped stock yesterday, stashed in gold, then dumped gold when the market looked like it was rebounding.
FYI...margin is how much you can borrow against your stocks. In real life, you can borrow 50% against your stocks and 0% against options. That means you get up 2x the market value on your cash investments. 1/2 paid from cash and 1/2 paid from borrowing on margin.
So some of you may be wondering why you have more "CASH" than "ACCOUNT VALUE" when you short? It's because you've sold something and the sale of the stock moves to cash. However, your "cash" will be marked to market against you and your "BUYING POWER" reduced if the stock moves up in value.
The bottom line is always look at your "BUYING POWER" to understand how much you have available for investment or how close you are to a margin call. Once "buying power" goes negative you'll get a margin call and eventually be forced into liquidation to cover some of your debt. "Buying power" will constantly move when you're borrowing on margin since it's marking to market every time your holdings change in value.
Here's how they calculate it for this game...Buying Power: The total value of your cash and margin accounts that can be used to trade stocks. Negative buying power indicates that no further trading can be performed and that margin call will occur. Calculated as: =cash + (Long Stocks x 50%) - (Shorted Stocks x 150%)
The good news in this game is there's no cost to borrow. The bad news is margin is painful when prices move against you.
For a margin call...assume you buy $5,000 in stock out of cash and buy an additional $3,000 on margin, resulting in 62.5% net equity ($8,000 in stock less $3,000 margin debt). If your $8,000 worth of stock falls to $4,000, your net equity would drop to $1,000 ($4,000 in stock less $3,000 margin debt).
Our required equity is 50% (50% of $4,000 market value = $2,000 margin requirement) so you would receive a margin call for $1,000 to make up the difference between your equity of $1,000 and the required equity of $2,000.
So some of you may be wondering why you have more "CASH" than "ACCOUNT VALUE" when you short? It's because you've sold something and the sale of the stock moves to cash. However, your "cash" will be marked to market against you and your "BUYING POWER" reduced if the stock moves up in value.
The bottom line is always look at your "BUYING POWER" to understand how much you have available for investment or how close you are to a margin call. Once "buying power" goes negative you'll get a margin call and eventually be forced into liquidation to cover some of your debt. "Buying power" will constantly move when you're borrowing on margin since it's marking to market every time your holdings change in value.
Here's how they calculate it for this game...Buying Power: The total value of your cash and margin accounts that can be used to trade stocks. Negative buying power indicates that no further trading can be performed and that margin call will occur. Calculated as: =cash + (Long Stocks x 50%) - (Shorted Stocks x 150%)
The good news in this game is there's no cost to borrow. The bad news is margin is painful when prices move against you.
For a margin call...assume you buy $5,000 in stock out of cash and buy an additional $3,000 on margin, resulting in 62.5% net equity ($8,000 in stock less $3,000 margin debt). If your $8,000 worth of stock falls to $4,000, your net equity would drop to $1,000 ($4,000 in stock less $3,000 margin debt).
Our required equity is 50% (50% of $4,000 market value = $2,000 margin requirement) so you would receive a margin call for $1,000 to make up the difference between your equity of $1,000 and the required equity of $2,000.
What's the stock? I think it's one of the problems in real life people have trading thinly traded stocks is that you wouldn't be able to buy any size without moving the market. In the virtual world you have no impact on the market when you have an outsized bet so they limit you with the 10% rule volume rule.
KMRblue1027
The Crown!
There is still room in this right? I'm willing to try.
jtb1127
Deity
Yes, there should be more room.
KMRblue1027
The Crown!
Stupid 500 server errors 
. I can't join up.
. I can't join up.
