2.7. Interest and Trading

A few notes on interest and trading

As discussed last round, we’ll be spending at least the first couple of weeks of the round doing dedicated trading, with the goal of building up an early large cash reserve which will generate amounts of interest that we could live more than comfortably off of for the rest of the round. Not only is is extremely beneficial and advantageous for us to do so, it would also be extremely stupid and damaging not to, as other alliances will be doing the same thing and we would find ourselves permanantly behind the pack if we opted to screw around early and not set ourselves up for the rest of the round.

Interest is 5% and calculated nightly, at 0:00 server time in both alliance and personal accounts. Is is NOT calculated for money you have on hand. [b]As such, make sure you deposit the money you make from trading in the bank each day before midnight.[/b]

I can’t stress how important it is for us to trade early and effectively. The more money we make and the earlier we make it, the better and longer it pays off. Likewise, if we delay and put off trading, the benefit we get from it when we finally get around to doing it is consideraby less. [b]If there was ever a time to dedicate yourself to one of these trading sprees, this is it. [/b]

The point of cash centralization is a big one. Contrary to how you might expect interest to work, there’s no monetary advantage to compiling all the cash in a single account. That is, if you had 10 bil in the alliance account, you would make 500 mil in interest from it. If you had 1 bil each in 10 personal accounts, each of those would make 50 mil in interest; the net gain is the same.

However, there are significant advantages, organizational and otherwise, to consolidating our cash in the AA(s). Money that you keep in your personal account as a rainy day fund is not, for the most part, used or useful. More important, it’s not accessible to anyone else. If you have 5 bil in your personal account, it’s 5 bil that you don’t need at the moment but the alliance or another member could use but doesn’t have, even though the cash has been made. Pooling resources allows them to be distributed where they’re needed and immediately helpful and in an alliance like this, what helps a fellow member helps you as well.

The goal is 1-2 trillion between the AA’s, making 50-100 bil a day in interest,growing bigger every day. This would allow us to reship at will off of interest alone, in expensive ships, and not have to bother cash trading for the rest of the round. When we get there, we will be in outstanding shape.

Get trading!