best rate buy issues

[merpunk]

If we can cancel a best rate order, do we get the transaction fee back? (I know it's a small amount for many people but I don't have a lot so it's still cash to me.)

I placed an order using the suggested best rate buy, 250 l for 1 $. It said the estimate was 3 days, however, I discovered later how to see the open orders and there's lots more open ones for 249 and 248 so I'm starting to lose hope that I'll get my linden at all. Can I trust the estimate? Can I just change the rate on my order?

This whole process is confusing, I wish things would be clearer for people who don't have a lot of experience with it.

Thank you.

[Rolig Loon]

2 hours ago, merpunk said:

If we can cancel a best rate order, do we get the transaction fee back?

Nope.  (Corrected by Lil, below ... ) The LindeX operates very much like RL currency exchanges. The fees are your cost of doing business.

Read 

Until you are familiar with the way that currency exchanges work -- and even then, unless you are trading more than about $40 worth of L$ -- it's best to use the Market Buy/Sell option instead of using Limit trades.

Edited March 26, 2021 by Rolig Loon

[merpunk]

I've read the FAQ above, but still find it confusing. Thanks anyway.

Not returning the fees sucks, I guess I'll just wait and see if my order is ever filled.

[Rowan Amore]

55 minutes ago, merpunk said:

I've read the FAQ above, but still find it confusing. Thanks anyway.

Not returning the fees sucks, I guess I'll just wait and see if my order is ever filled.

Also, unless you're purchase a large quantity, the instant buy is probably your best way to go.  The savings is negligible.

[Rolig Loon]

4 hours ago, merpunk said:

This whole process is confusing, I wish things would be clearer for people who don't have a lot of experience with it.

I think what confuses at least some people is the concept of an exchange.  Whether you're using the LindeX or some other currency exchange in RL, you are not "placing an order". You are posting an offer to buy (or sell) currency that you already have for currency that someone else may be willing to trade for.  In this case, SL residents are trading with each other. 

So, when you use the Limit Buy option, you are saying, "I am interested in buying $10 worth of L$ and I am willing to pay at the rate of L$250/$1.  Is anyone interested in selling to me?".

Other SL residents with L$ to sell will be looking to sell at the best price they can, so if your offering rate is at least as low as the rate they have set as their limit, you have a deal. It's basically as simple as that. 

Behind the scenes, several things are happening.  Someone has to manage the bookkeeping that matches up potential sellers with potential buyers.  That's the function of the LindeX, and it's why they charge a fee for each transaction.  Not only does the LindeX need to match sellers and buyers, but they also need to let the buyers who offer the lower rate move to the head of the line ( so people offering to buy at L$249/$1 will get their orders filled before people who offer L$250/$1 ) and they want offers that have been open the longest to execute before everyone else (first come, first served).  Finally, the LindeX wants to be sure that when a sale goes through, the money will be available. Your offer is not just an IOU; it's a real offer with money on the table.  That's why the LindeX charges your credit card or PayPal as soon as you make your offer.  The LindeX holds onto the cash in an escrow account, waiting for the sale to execute.  When it does, the cash is sent to the seller's account. If you cancel the offer, the cash is moved to the USD balance in your own account.

That's all very similar to what happens in RL currency exchanges if, say, you wanted to buy Euros with US dollars.

RL exchanges and the LindeX offer a shortcut too, called the Market Rate.  When you use that shortcut, you are saying, "I want to buy $10 worth of L$ and I am willing to pay at whatever rate other people are currently selling their L$ for".  The LindeX takes an instant snapshot to see what L$ are currently selling for, and that's what you pay.  No haggling, no waiting, no escrow account.  You don't get quite as good a price as you might if you were willing to make an offer and wait, but you get your L$ right now.

Edited March 26, 2021 by Rolig Loon
typos. as always.

[LittleMe Jewell]

2 hours ago, merpunk said:

If we can cancel a best rate order, do we get the transaction fee back?

 

2 hours ago, Rolig Loon said:

Nope. 

 

Actually, if you cancel the order, the full amount of the transaction, including the fee, is refunded to your USD balance.   

The fee is only actually charged if the transaction completes.

I do Best Rate buys a lot and have cancelled quite a few of them also.

Edited March 26, 2021 by LittleMe Jewell