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Kazanture Aleixandre
Here I am.
Join date: 5 Oct 2005
Posts: 524
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05-25-2006 13:58
Really? you put at 321, wait 5-10 mins, your 350000 will sell then put buy request at 341. well, they are already doint it.just watch transactions. It is not a theory. The only problem is their monthly limits, well, will solve soon. /130/99/109134/1.htmlwell, i already got an answer to my question. So can ignore this one. ------------------------------------------------------------------------------------------ Your example is a little bit backwards. Using your numbers: best sell rate: 320 best buy rate: 340 To buy right now you must buy at the current sell rate - the rate that others are selling. So: then a guy is buying 350000L$ at 320/usd for $1093. Then if he wants to turn around and sell immediately he must sell at the rate people are currently buying: selling 350000L$ at 340/usd for $1029. This poor trader just lost $63, or ~6%. He didn't make money. |
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Kelly Linden
Linden Developer
Join date: 29 Mar 2004
Posts: 896
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05-25-2006 14:45
I must still be misunderstanding.
Looking at the market right now, if I want to Buy L$ the best deal I am going to get is: L$330 / US$1.00. L$350,000 will cost me ~US$1063.76.
If I turn around and want to sell those L$ I just bought the best deal I am going to get is: L$358 / US$1.00. This will be an estimated proceeds of ~US$936.21.
I have just lost US$127.55!!
However, if for some reason you could buy L$ for less than you could sell them, then yes you could make money. However the spread generally goes the other way.
If the question is about placing orders so they are the first to be sold to or bought from causing an inherent direction in market movement, I don't think so. Placing orders to sell first means placing them at a higher L$ / US$ rate, true. But placing the orders to buy that will fill first means placing them at a lower L$ / US$ rate.
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- Kelly Linden
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