The market is an actual market determined, by kapi-players. It is not determined by a computer, and usually sell lower than the market you don't want to get the high price of it. The only time you sell higher than the market is when the you have higher quality.
The market takes 10% of your total sales, so if you sell 1000 units of power at the market right now for 0.10 your total sales would be $100. But the market takes 10% of that which is $10, so you actual total sales is only $90 (100-10=90) and you are only selling the power for 0.09. So most people think that you can make more selling by contract, sometimes that is true sometimes it is not.
Sometimes when you do make more selling by contract:
You can make more on lots of things you just have to look at the market and do mental math. Lets say you sell 1000 units of sugar (since it is high) at 125 to the market (Q0) your total sales would be $125,000. But remember the 10% commission fee, which would be $12,500, then your actual total sales would be $112,500 so you are actually getting $112.50 per sugar unit. Now you sell 1000 units of sugar (Q0) for $115 by contract it might not seem like your getting as much by selling by contract as compared to selling to the market, but you are actually getting paid $2.50 more. Yes if your buyer is in a different country then you have to pay a small fee, and I mean a small fee. It isn't even 1% I believe I am not for sure. Anyway selling by contract here you made more money.
Sometimes when you do lose more selling by contract:
Yes there are times when you don't make as much or more when selling by contract. Perfect example, couple months ago when power was in the 0.07 range, 0.07 by market 0.06 asking. When you sold to the market 1000 units of power at 0.07 your total sales is $70, with the 10% fee ($7) yo were getting $63, (63/1000=0.063). Yes Kapilands doesn't go to the thousandths place but when you have a lot of power that 3 thousandths can be a lot. For example selling 1 billion power at 0.06 = $60,000,000, now selling the power at the 0.063 (market price) you would be getting $63,000,000. So selling by contract at 0.06 instead of selling to the market at 0.07 you were losing more money. Here is a list of what you can safely know if you are making or losing money.
- Market --- Contract --- Making/Losing
- 0.04 ---- 0.03 ---- Losing 0.006
- 0.05 ---- 0.04 ---- Losing 0.005
- 0.06 ---- 0.05 ---- Losing 0.004
- 0.07 ---- 0.06 ---- Losing 0.003
- 0.08 ---- 0.07 ---- Losing 0.002
- 0.09 ---- 0.08 ---- Losing 0.001
- 0.10 ---- 0.09 ---- Even
- 0.11 ---- 0.10 ---- Making 0.001
- 0.12 ---- 0.11 ---- Making 0.002
- 0.13 ---- 0.12 ---- Making 0.003
- 0.14 ---- 0.13 ---- Making 0.004
- 0.15 ---- 0.14 ---- Making 0.005