Technical reason for the recent drop in the L$ value?

Looking at the LindeX chart today you can see a lot af trades happening at or around 320 and a large number around 340. Thats a rather sharp drop in the L$s value again. As I am a firm believer in cause and effect I was wandering what could be - besides simple panic - the cause for this effect.



Please forgive me, if this sounds naive: I am no expert on the mechanics of stock or currency exchanges, but ... isn't this the logical consequence of the introduction of limited buy orders yesterday?

You are absolutely correct and the real average of the limited sell orders is around L320/1. Many people are confused as to how the currency market now works but the important thing for the offerors of limited sell orders to remember is there is still about L$8 million in direct open buy purchases being executed daily that are applied against their open sell orders. Don't be fooled but the overnight jump in average exchange rate due to the significant quantity of L$ being sold to the open buy orders of around L$340/1.

Addendum:

We shouldn't have to guess what the buy orders are--they should be listed the same as the sell orders. This system is just nutty.

I would not say that the system is "nutty". When you describe it on a piece of paper (or in a Powerpoint slideshow ) it sounds perfectly plausible - to an engineer. The only problem is: people behave differently than in theory.

It would make perfect sense to a seller to not simply put up a unlimited sell offer. You currently get a price, that is nearly 10% better, with a limited sell offer. But people are lazy and some of them don't see the possibility to make limited offers at all. You have to switch this on explicitely in preferences.

This is not like an (software) engineer thinks, though. He will expect users to make logical informed decisions usually. That's why there is a whole field called "software usability" these days: to make sure that applications are designed accordingly how real users behave.

They are listed at the bottom of the page after the sell orders. We are looking at moving them to be beside the sell orders.

It may also not be helping that it appears you have to have a US$ balance on your account before you can buy money, rather than simply charging your credit card when you buy as it always used to be.

Why should I have US$ tied up on my SL account when I have no need to? Or is there some setting that isn't right somewhere?

Lewis

It costs either %3 or $3 for each transfer from a credit card. They did that so that people won't get charged $3 every time they wanted to buy or sell curency.

Assuming it's the same "US$ balance" that your tier is taken from, it seems rather pointless to keep anything there because it'll drop every time your billing cycle comes round, and if you're just a small user of Lindex like most people, the whole thing becomes a further joke.

Are you sure about $3 every time you transfer from a credit card... because if so, doesn't that change the value of a premium account if you are being charged $3 each time you pay your monthly fee?

I really don't understand all of this, or the reason for the changes. It seems to have made things only worse.

Lewis

As I said, I forgot whether it's %3 or $3. I know it's not cheap. Essentially any money transfer from one place to another will cost you. And yes, premium accounts include the fee that it costs LL to pull the money out of your account. With the new setup, if you just want to buy a bit of Linden once, you just pay the same transfer fee you paid before. If you are interested in trading Linden, you pay that fee just once while transfering money to LL, and then only pay the trade transaction fees. If you are a business owner who gets paid in L$, your $L gets deposited into SecondLife/LindenLabs, and right withing Lindex you can convert them to US$, which you pay to LL, i.e. keeping the money in the same place, also avoiding visa related transaction fees.

How strange. I'm used to free banking in the UK, and its the norm not a special package.

Lewis

Ohh U Brits.... We Yanks own joo...

Yeah, banks charge us up the ass here in USofA. It's why every city you go to, the biggest building will always be a bank. Also, I noticed that in europe, all prices tend to include fees, taxes, etc. If a loaf of bread is $2 whatever country's curency you're paying with, it'll be $2 when you take it to the counter. Here in US, if it's $2 on the shelf, it's $2 plus whatever sales tax they have to tack on when you bring it to the counter. It's a MAJOR pain in the ass having to keep track of stuff when you have a certain amount of cash in your pocket. Perhaps the same applies to banks, where all the fees are just included in your normal monthly service fees or whatever kind of fees you may have. Or perhaps in UK, banks make money just off the interest off the millions that people give them to play with, instead of like here, where banks make money off the interest off the milions people give them to play with, and then turn around and rape everyone for even more money. Ugh.

No, in the UK banks make millions by selling off cashpoints to private companies that replace them with machines that impose a fee, then buying those companies.

Then I suggest you remove the Scottish flag from your signature.

Just remember that the lease on the colony comes up for renewal soon.... and we'll just reclaim you.

Lewis

Dont make me quote Braveheart at you!

I don't believe you have repaid you WW II lend lease debt yet.

With this new system of selling Im not sure what to do... I need to sell L's before my billing date yet not sure which way to go and I am in need of answers in real easy terms. Thanks

you know, with the 9 trillion deficit, I wouldn't be surprised. Although you would probably have to buy us from China. No doubt mass produced at a discount.

The way the US Dollar is falling, you might not be far from the truth..

Lewis I assume you never traded in the market. That is always the way, the only difference is you may get margin trading accounts in the market if you are "known" or have good credit backing. But the point is , trading s never done straight from bank. You have to have a market account.

And also, could you tell me which bank you are with, cos mine lloydsTSB charges me £1.00 for every overseas transaction.

You may have a point, but it surely is not technical analysis. According to Technical analysis, lindeX chart shows a rising wedge formation that (in normal market) would indicate a pending fall (=rise in L$ value) soon. But that is when the market is normal and established one like Dow or S&P etc. Lindex can't be predicted at the moment as it has many variables which are simply incomprehensible like LL itself, which is a very bad Fed. Therefore, i can't say whether this formation on chart has any meanings at all. But if the Lindex was a stable market, at this point i d have thrown real money and bought as many L$ as I could.