So I've begun my first foray into trading on the LindeX for profit, as opposed to simple conversion. It seems to be going well so far - the worst case scenario is that I could get stuck with surplus US Dollars that I couldn't get rid of. Oh darn.
It seems to me that the profitability at the current best rates (Sell = L$265/USD, Buy = L$276/USD) approaches 0.005 or so as the amount of Lindens trades increases to infinity. This takes into account the 3.5% transaction fee on the sell side, but disregards the $0.30USD fee on the buy side (argument: as the amount of money trades increase, the 30 cent fee becomes insignificant on the total rate of return). Here's the equation, for those interested:
(1 - .035) * 276 / 265 = 1.00506604...
I've also noticed that those selling Linden Dollars appear to be smarter than those buying them. The reason is because I sold my Lindens pretty quickly, meaning there were lots of market buys (people trading USD at whatever rate for L$). However, my USD have been sitting tight for over 24 hours now, despite the quantity offered at 276 being much lower than that offered at 265. That means that not as many SL'ers are pushing the "sell at market" button when they go to sell their Lindens. Interesting, and slightly reminiscent of P.T. Barnum.
Any hints for me from those of you out there who have more experience than I do in this realm?
GM
P.S. I have a cute Excel workbook for my trades, if anyone's interested. Appears to be accurate within 0.01USD, although your results may vary.
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About market buys. I don't know if it's still that way, but the first time I bought L$ I had to activate/change don't remember what on the SL website, in order to activate the limit buy option.
By not doing that, only the market buy would have been available to me. From what I read on a popular Italian forum, it should still be that way, 'cause a lot of people does not seem to have a clue.
At the VSTEX we offer on our website both the market and limit buy options, with the "market" one on top.
I noticed that unexperienced users still go for the market buy option. Maybe it's because of the top position?
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