Have you ever wondered what the credit and debit limits mean?
If you have just joined the CTTE you will find that your credit limit is +T5000 while your debit limit is -T500. If your new account starts with a balance of zero, why are the limits not symmetrical?
In the beginning the debit limit was also set at T5000 but after it became apparent that some new members were seeing the debit limit as a free T5000 “starter balance”, a sort of “free gift” that they could ‘spend’ on the stuff available on the Talent Exchange, it was decided to reduce the debit limit to its current T500 for new members.
The debit limit must NOT be seen as the amount of “free stuff” that you can get from the Talent Exchange, or as the amount you can get before giving anything back. If you take from the Talent Exchange and never give anything back, it is the same as theft. Everything that is received has to be ‘paid for’ by giving something back to the community. Exchange is a circular process of giving and getting. You can only get if someone else gives, so why should you receive if no one is going to get anything from you.
Everyone’s account starts at zero, and the aim of all traders should be to keep their mean balance over the long term at around zero. Every trader’s balance is sometimes above zero and sometimes below. The limits create a band that we all have to operate in. A T500 debit limit is sufficient to get you going but if you find that it is limiting you can ask to have it extended, but it will only be extended if you have proved that you are an honest trader and prepared to give as much as you receive.
If you are a seller, you should always check your potential buyer’s trading record before you agree to sell. If you see that they are a ‘taker’ who has a deep debit balance, has made no or relatively few sales and has no offerings, you should refuse to sell to them. Only by each of us monitoring the trading activity of our buyers can we keep the Talent Exchange healthy.