The current debate on literary cognitivism in the philosophy of fiction typically assumes that we can rigorously distinguish between fictional and factual, and focuses on the question of whether and how works of fiction can impart propositional knowledge to the reader. In this paper we suggest that this way of framing the debate may be problematic. We argue that works of fiction almost inevitably include a reference to the real world and that – contrary to what is usually assumed – the exchange between fiction and reality is vivid as well as potentially fruitful. We shed a new light on these complex dynamics by building on the metaphors of trade exchange and smuggling between the two worlds. While the current debate exclusively focuses on c...