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Regional FlagFlipping and its effects on the marketSource
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penatbater.4710
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#1 -

I’m not very good at economics or investing, and have only heard of the term flipping in this game (lol). From what I understand, flipping involves buying large quantities of products (at the lower price margin) and selling them at a higher price so fast and in large quantities that you get a profit from selling them. To me, it feels like flipping merely is artifically increasing the price of a good for profit. Please correct me if I’m wrong.

If this is the case, isn’t this a contributing factor to inflation? I mean, if one person does it, it probably wouldn’t have that big of an impact. But if hundreds of people do it across a wide variety of items, mostly commonly traded items, wouldn’t people think that the price its being sold for is the correct market value for it? I read up on investopedia about flipping stocks, but commodities don’t have a close/open trading session, and things don’t tend to fluctuate very much within a few minutes. I do have read about how some people with large quantities of gold used to buy up the precursors in the market to drive the price upwards.

Lastly, I heard in the chocolate thread about people trying to drive the prices of chocolate up to 1s or more. But then I read about another poster who can crash the market at whim. How is this possible?


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ArenaNet Poster
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#7 -

Arbitrage is transferring value between two markets, flipping is attempting to create opportunity between buy and sell price in a single market.