2018-12-04 02:20:58 +01:00
|
|
|
.. _gameplay_stock_market:
|
|
|
|
|
|
|
|
|
|
Stock Market
|
|
|
|
|
============
|
2019-01-05 01:50:27 +01:00
|
|
|
The Stock Market refers to the World Stock Exchange (WSE), through which you can
|
|
|
|
|
buy and sell stocks in order to make money.
|
|
|
|
|
|
|
|
|
|
The WSE can be found in the 'City' tab, and is accessible in every city.
|
|
|
|
|
|
|
|
|
|
Positions: Long vs Short
|
|
|
|
|
^^^^^^^^^^^^^^^^^^^^^^^^
|
|
|
|
|
When making a transaction on the stock market, there are two types of positions:
|
|
|
|
|
Long and Short. A Long position is the typical scenario where you buy a stock and
|
|
|
|
|
earn a profit if the price of that stock increases. Meanwhile, a Short position
|
|
|
|
|
is the exact opposite. In a Short position you purchase shares of a stock and
|
|
|
|
|
earn a profit if the price of that stock decreases. This is also called 'shorting'
|
|
|
|
|
a stock.
|
|
|
|
|
|
|
|
|
|
NOTE: Shorting stocks is not available immediately, and must be unlocked later in the
|
|
|
|
|
game.
|
|
|
|
|
|
|
|
|
|
Order Types
|
|
|
|
|
^^^^^^^^^^^
|
|
|
|
|
There are three different types of orders you can make to buy or sell stocks on the exchange:
|
|
|
|
|
Market Order, Limit Order, and Stop Order.
|
|
|
|
|
|
|
|
|
|
Note that Limit Orders and Stop Orders are not available immediately, and must be unlocked
|
|
|
|
|
later in the game.
|
|
|
|
|
|
|
|
|
|
When you place a Market Order to buy or sell a stock, the order executes immediately at
|
|
|
|
|
whatever the current price of the stock is. For example if you choose to short a stock
|
|
|
|
|
with 5000 shares using a Market Order, you immediately purchase those 5000 shares in a
|
|
|
|
|
Short position at whatever the current market price is for that stock.
|
|
|
|
|
|
|
|
|
|
A Limit Order is an order that only executes under certain conditions. A Limit Order is
|
|
|
|
|
used to buy or sell a stock at a specified price or better. For example, lets say you
|
|
|
|
|
purchased a Long position of 100 shares of some stock at a price of $10 per share. You
|
|
|
|
|
can place a Limit Order to sell those 100 shares at $50 or better. The Limit Order will
|
|
|
|
|
execute when the price of the stock reaches a value of $50 or higher.
|
|
|
|
|
|
|
|
|
|
A Stop Order is the opposite of a Limit Order. It is used to buy or sell a stock at a
|
|
|
|
|
specified price (before the price gets 'worse'). For example, lets say you purchased a
|
|
|
|
|
Short position of 100 shares of some stock at a price of $100 per share. The current
|
|
|
|
|
price of the stock is $80 (a profit of $20 per share). You can place a Stop Order to
|
|
|
|
|
sell the Short position if the stock's price reaches $90 or higher. This can be used
|
|
|
|
|
to lock in your profits and limit any losses.
|
|
|
|
|
|
|
|
|
|
Here is a summary of how each order works and when they execute:
|
|
|
|
|
|
|
|
|
|
**In a LONG Position:**
|
|
|
|
|
|
|
|
|
|
A Limit Order to buy will execute if the stock's price <= order's price
|
|
|
|
|
|
|
|
|
|
A Limit Order to sell will execute if the stock's price >= order's price
|
|
|
|
|
|
|
|
|
|
A Stop Order to buy will execute if the stock's price >= order's price
|
|
|
|
|
|
|
|
|
|
A Stop Order to sell will execute if the stock's price <= order's price
|
|
|
|
|
|
|
|
|
|
**In a SHORT Position:**
|
|
|
|
|
|
|
|
|
|
A Limit Order to buy will execute if the stock's price >= order's price
|
|
|
|
|
|
|
|
|
|
A Limit Order to sell will execute if the stock's price <= order's price
|
|
|
|
|
|
|
|
|
|
A Stop Order to buy will execute if the stock's price <= order's price
|
|
|
|
|
|
|
|
|
|
A Stop Order to sell will execute if the stock's price >= order's price.
|
