by Shaydo » Wed Jan 07, 2015 10:13 pm
I think the potential problem with option 2 is that large gaps in the market could be created that will allow for larger profits than option 1 and if ports only fluctuate there prices very 1hr then ships capable of making the routes in less time would be able to take advantage of the time taken to change price and you could potentially over sell to a port before the change, thus then creating a massive drop in price on the change but allowing for a large profit before hand.
Also if only the last 10 transactions are taken into account, lets say a port has a good sell price so what would happen if right before the hour i bought 1000 bars(transaction 11) and then proceeded to buy 10 bars as 1 transaction and then sold back say 90 bars spread over 9 transactions of 10 bars each, as far as the port would be concerned it is at +90 bars so the price would drop for purchasing bars potentially further? If the reverse was then done could you force the port price to go higher, even though the reserves will have not changed accordingly?
I think all the ports should be linked and there price change should be as close to real time as can be managed, this would mitigate excessivly large gaps in the market and make price manipulation a lot more difficult as a large gap in stock would need to be between ports and i think this would make it much harder to manipulate.
Question, Is market price manipulation and fixing against the rules? Cos surely any trader that suggests a good route to others or convinces others to use a specific route is manipulating the market prices?