Lindex rates

How do the Lindex rates work? I thought the top box allowed you to sell at the current market rate (which is 265) but I compared the figures for the straight forward rate and selling at 265 and the 265 rate yields more US dollars for my Linden dollars.

265 is the current market buy rate, 275 is the current market sell rate.

I don't know what you mean by "straight forward" rate. Do you mean market sell rate?

Sorry maybe I'm not explaining myself properly. I put in the amount of Linden dollars I wanted to sell in the market sell box and checked the estimated proceeds.

I then put in the same amount of Linden dollars in the limit sell box, at a rate of 265 and checked the estimated proceeds. This was a higher figure, I thought it would be the same as the market sell figure.

You are getting the buy and sell rates confused. Note that it makes a difference; the market rate for selling lindens is not the same as the market rate for buying lindens. As Kidd pointed out, the rate when you do a market sell is 275, while 265 is the rate when you are buying.

Where things get a touch confusing is that the market rate for buying is determined by the limit rate for selling. That is, the market rate for buying is determined by the cheapest limit sale, and the market rate for selling is determined by the most expensive limit buy (cheap and expensive being defined here from the perspective of the buyer.) Because 265 is the cheapest limit sell, 265 is the market rate for buying.

To understand what the numbers mean, do a little math. At a sell rate of 275, selling L$10,000 would get you $36.36 (10000/275.) At a selling rate of 265, selling L$10,000 would get you $37.73 (10000/265.) In both cases of course you then need to knock off LL's cut to determine how much you actually get.

if you sell at 265 rate, you should be able to recieve your Dollars quicker than if you set it for 264. It goes thorugh the best buys list from top to bottom...the 265 rate will get filled first by BUY orders....followed by 264...263 and so on. If you don't mind waiting a few days you could try 263 rate.

If you set for sale at 265 Lthe effective net proceeds you'll recieve will be approx 274.5 L per USD.(the diff is LL exchange commissions)

Ah penny has dropped, thanks!

It's been over a month since the rate went to 263, so it could be more than a few days.

the market rate is an average, you may sell some for different prices, which is why the dollar amount for market sell was lower than it would be for fixed (265) rate

Basically, if you use the Market Sell box, you'll get the best exchange rate at the time you sell, which is usually 28500L per US$100 bought, including the LL fee. There are very brief periods when the exchange rate is better though.

If you want more, then you can use the Limit Sell box to offer your L$ for sale at the price you want, but you'll need to wait until someone is willing to buy at the rate you want, and your sales may come in chunks rather than in one sale.

its not to do with that...i think Phil says it best
During the last month or so....i have been selling Lindens at either the 265L or 264 L rates depending how quickly i want it converted.

Exchange Rate Total Remaining Quantity


L$265 / US$1.00 L$240,886


L$264 / US$1.00 L$60,325,911


L$263 / US$1.00 L$20,228,496


L$262 / US$1.00 L$1,457,181


..............

But the rate in question was 263, which nobody has gotten in the last month on the LindeX.


This is just part of the picture. On the buy side, there's only 35M L$ being requested at 275, while the daily volume has been running between 70M and 90M, with a few days higher and a few lower.

I haven't been keeping track of the amount being offered at the 264 level on a daily basis. That trend may indicate whether or not we're likely to see 263 soon. But the snapshot you
gave doesn't say much by itself.

I think this wording is misleading, even though it's technically correct.

If you use the Market Sell box, you'll get the worst exchange rate you're likely to get on the LindeX (unless you foolishly submit an even worse limit order). It's only 'best' in the instantaneous sense - best from the available limit buy orders at that instant in time. It's always better to do an intelligent limit order. You'll have to wait until you get matched against a buy order, and while in theory that could be a while, in practice it's not. My last sell order was at 264, and filled in two days. If I'd done it at 266, it probably would have filled within an hour or two.

265 filled in about two minutes yesterday. The amount of cash listed in a particular figure is important to check. If you want it quite quickly, then avoid choosing the rate with 60 million in it.