# A mechanism for short selling through the current contract system

**URL:** <https://forums.eveonline.com/t/a-mechanism-for-short-selling-through-the-current-contract-system/145073>\
**Category:** Market Discussions\
**Created:** [March 10, 2019, 7:46am UTC](https://forums.eveonline.com/t/a-mechanism-for-short-selling-through-the-current-contract-system/145073 "2019-03-10T07:46:51Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Azhek\_Ariman](https://sea1.discourse-cdn.com/eveonline/user_avatar/forums.eveonline.com/azhek_ariman/32/22217_2.png) [@Azhek\_Ariman](https://forums.eveonline.com/u/Azhek_Ariman)\
**Post date:** [March 10, 2019, 7:46am UTC](https://forums.eveonline.com/t/a-mechanism-for-short-selling-through-the-current-contract-system/145073/1 "2019-03-10T07:46:51Z")

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Maybe i’m wrong, but it looks workable

Step1  
Player\_A who owns 1kk trit, creates (1) a personal contract for the exchange of goods (I change X for ISK) for player\_B, puts prices at the price (4.43) of the cheapest sell order available at the station (leverage 1: 1) \* volume + percentage income per day \* number of days ( for reverse contract)

* * *

contract type:  
jita 4-4  
I will pay: -  
proposed items: 1kk trit (goods on credit)  
I will receive: (4,43kk (deposit) + 0,133kk (income 1% \* 3 days)) ISK  
Required items: -

* * *

Step2  
Player\_A creates (2) a personal contract for the exchange of goods (changing ISK for X) in which he proposes to buy out 1kk of tritanium at price of 4.43 for 3 days from player\_B  
**important condition** Player\_B does not accept conditions (2) until he decides to close a trading position, and the trading contract itself continues to be open

* * *

contract type:  
jita 4-4  
I will pay: 4,43кк (refund of deposit)  
proposed items: -  
I will receive: -  
Required items: 1kk tritanium (return goods)

* * *

result:  
player\_A (+ 1k trit + 3% income - isk deposit)  
(in case of non-fulfillment (2) -1kk trit + 3% income + isk deposit)  
player\_B (+4.43isk Deposit - 3% income + volume \* (sale price - purchase price) -1kk trit)  
(in case of non-fulfillment (2) (- 4.43isk deposit - 3% income - volume \* (sale price - purchase price) + 1kk trit)

This scheme is largely based on trust between the players. especially in the case of rising prices, but these risks can be embedded in different leverage ratios (1: 1 in my example). you can use different leverage ratios, 1:10 for those you can trust, or 10: 1 for covering all possible risks

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**Author:** ![Bad\_Bobby](https://sea1.discourse-cdn.com/eveonline/user_avatar/forums.eveonline.com/bad_bobby/32/17221_2.png) [@Bad\_Bobby](https://forums.eveonline.com/u/Bad_Bobby)\
**Post date:** [March 11, 2019, 9:48am UTC](https://forums.eveonline.com/t/a-mechanism-for-short-selling-through-the-current-contract-system/145073/2 "2019-03-11T09:48:23Z")

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> [@Azhek\_Ariman](#):
>
> This scheme is largely based on trust between the players.

Oh dear.

There have, in the past, been exchanges and brokerages set up by “trusted” third parties that have provided some kind of short selling functionality, but these had such low uptake that they weren’t viable. The reality is there isn’t enough interest in this kind of thing to support any kind of volume of activity. Even if it was properly built into the contract system so as to make it easy to do, then we still have the issue of their being very few players that understand or appreciate that kind of functionality and less still that will make use of it to a sufficient degree.

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**Author:** ![system](https://global.discourse-cdn.com/eveonline/original/3X/4/1/41ec4921cbaca7a6f9ea556e7cc20018461eae5e.png) [@system](https://forums.eveonline.com/u/system)\
**Post date:** [June 9, 2019, 9:48am UTC](https://forums.eveonline.com/t/a-mechanism-for-short-selling-through-the-current-contract-system/145073/3 "2019-06-09T09:48:23Z")

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