Guild Wars 2

Why on earth would somebody come in with a buy order thats way over the current “high buy”?

On a highly traded crafting material, somebody place a buy on 4000 at 2.33S. The current highest buy at the time was 2.00 silver.

/facepalm

If he bought say, 10k at 1.99 he now seeks to bait people into outbiding his bidwall- at 2.38 he’d make roughly 4 copper win (2.38*0.85-1.99) multiplied with 10k.
That could be one reason.

Another could be that the item was undervalued (if he can place a bid 35c over the highes bo without tipping into the sellorders that could be the case) and he simply wants those 4k of items (for what he thinks is the real worth) without having to fear people outbidding him.

My money would be on option 1 though after you said highly traded crafting material.

Probably got sick of the 1c bid war.

The real question is why buy so much

I do these type of things sometimes just to screw people like you over.

Like last night, I put up around 300 out of my 2000 cotton bolts for around 1.59 s only to be undercut by a bunch of guys. It went all the way down to 1.51 s and stayed there. I’d break even at 1.44 s so I just put the rest at that price for for the heck of it, make those undercutters wait longer and so that anybody who’d undercut further would just be ripping themselves off. Needless to say, nobody made any more larger undercuts.

@phoenix,

This worked in reverse from what you did. Instead of buying at 2.0S he put in a giant buy order at a rediculous high price (2.33S). The sell price at the time was ~2.40-2.45 so I still am not sure of the strategy here.

I am talking about a completely different item and time.

Spidy says it took less than an hour for your stock to be absorbed. Noting that Spidy’s resolution is 1 hour. It could have been minutes. But what’s funnier is that the listing at 159 is conspicuously absent now.

Or perhaps someone knows the real value of the item and feels that even at the price listed, they’re still going to make a big enough profit.

By closing the gap and putting in a large buy order, which costs a great deal of money to do, it’s less likely that someone will overcut them.

They will get their items, make a profit, then move on.

I do this ALL the time….especially when I see and item I can make 100%+ profit margin on, but if I were to put in a buy order of 4,000 at 1c over the current….I might get 10 of said item.

If I put a 4,000 piece buy order in at 40c over the current buy order….and can still make a 50% profit….I’ll take that all day long.

It’s a matter of weighing the amount of money you’ll make by the time it takes to make said money.

If it takes me 2 days or more to fill a buy order at 100% profit margin, but only 30 minutes to make 50% profit…..which is the one you think I should choose?

This item is still trading in the mid 2.40 silver range so it is no where near any point where this buyer can think of selling it.

Belexes.4923:

This item is still trading in the mid 2.40 silver range so it is no where near any point where this buyer can think of selling it.

Just because you don’t see a way to sell it and make money, that doesn’t mean someone else doesn’t.

Maybe someone bought up a whole bunch of stock up to a certain price point and will unload them slowly making a BUNCH of money on the items they bought for a low price….and losing a little bit of money on the items they bought for a higher price.

Who knows what that person is doing? There are a LOT of people taking some pretty big risks on the Trading Post right now. Take a look at the price of Bars of Chocolate over the last couple of months. Someone has effectively risen the price from around 30c each to over 1s each. That’s a HUGE risk on a highly traded commodity, but you know what…..they wouldn’t have done it if they didn’t think they could make money.

OK, look it up for yourself. The item was ancient bones, and the purchase was made about 24 hrs ago. See if you can make any kind of sense with this now that you can see exactly what happened. I have no reasonable explanation at this point.

http://www.gw2spidy.com/item/24358

edit – btw, this is not meant to be argumentative towards you @Charismatic. I appreciate your viewpoints!

Well….it looks to me like on the 18th of January, someone decided to take a risk and buy up approximately 10,000 of these up to a certain price point, effectively raising the price of the item to where it is now.

Someone is doing EXACTLY what I described above (with the Chocolate example). Now the question is…..

Can this player effectively KEEP the price at this level?

Maybe they did some early speculation in regards to the Jan 28th update. Maybe they’re thinking new recipes will be introduced that will require Ancient Bones. Maybe they wanted to push this price up so that after the update, the price would skyrocket and they could make a boatload of money on their speculation.

Who knows? I guess we can find out the answer to some of those questions after the update. Either way…..this/these player(s) took a risk.

Belexes.4923:

edit – btw, this is not meant to be argumentative towards you @Charismatic. I appreciate your viewpoints!

I didn’t take it as argumentative. :-)

Speculating on why people speculate is difficult to do though….because we’re not them.

I’ve seen some VERY profitable speculating happening on the TP. While I don’t actively participate in driving the prices of items up or down…..I have profited from risks of others.