Lindex and xstreet exchange

Can somebody explain to me why the lindex sells at 260/261 and xtreet currency exchange at 276/277 (over 2 million L$ open at that amount).

I mean, even with the 3.5% lindex fee (turning 261 into 270), that's still a 7L$ difference.

So why does nobody put in 5000US, buy all open L$ orders on xstreet, sell them on lindex and cash out with a 200US profit?
What am I missing here?

I don't see what purpose it serves LL to maintain two distinct exchanges. Is there a reason, from LL's point of view, to keep the both going as they are?

Regrettably I don't have 5000 bucks available to make your suggested deal with.

If they did get rid of one, I'm hoping it's the LindeX. I *really* like being able to use the masspay Paypal feature to get my USD quickly.. Minutes to an hour, instead of days.

Because of that, the XStreet exchange is doomed!! We can't be having that kind of efficiency around here!!

It's been so long since I've had anything to cash out, it doesn't matter to me, really. A lot of people also use XStreet to get around the limits that the LindeX places on accounts newer to trading funds.

Damanios, I believe that there are currency traders out there who do what you suggest, just on a smaller scale.

I think it's because LL has such a tight control on the LindeX too. I seem to recall there used to be a lot more currency trading than there is now. Could have been that some of them were part of the 'banks'?

the problem is moving the usd from lindex back to xstreet, that costs another 4% or so if you use paypall and takes a lot of time, using limit buy and sell on lindex or xstreet alone works faster and makes more profit per month.

I didn't mean moving it back to xstreet. I meant cashing out thought LL paypal. (Costs 1 US dollar, but takes a week... still a better profit than putting it on a savings account...)

Of course this only works when you use big money... and not dozens of small transactions. I assume most people (including me) don't like messing wirth 1000s of US in that way
(Also, it seems you're limited to 750US on xstreet, except when you use mass payment.)

Moving US from paypal to SLX costs nothing but once your US is in SLX it costs 2.2% to convert into $L. This means if you purchase $5000US worth of $L on SLX at 277 instead of getting $1,385,000L you actually get $1,354,530L. Then selling these on the lindex at the best possible rate of 261 nets you $5,001.55US for a grand total of $1.55US profit and a return of 0.031%.

This would take about a week so you'd actually be better off with the money in a bank.

Thanks for clearing that up, I didn't see the 30 pip (3L$) and the 2.2% conversion fees on xstreet. Xstreet is very good at hiding that info...

Counting and calculating through all the fees, percentages and pips, it seems xstreet and Lindex basically follow the same rates.

Guess I'll need another 'get rich quick' scheme.

I didn't know all the fees and calculations before but it's obvious that they /should/ offer the same exchange rate. You might not have $5000 but some smart person does and they would have traded against that spread until one exchange or the other moved back into line.

This discussion reminded me of an answer in an XSt forum thread, from here:

What made me blink was there seem to be people trading over 10 million L$ per month!?