Using the Exchange page to buy XRP's on GateHub Wallet

[LMem]

Hi All

I just saw that if you use the Exchange page on GateHub Wallet there is a very large discrepancy in the XRP's you get as apposed to the exchange rate offered. 

For example. 

I want to buy 5000 Euro worth of XRP's. 

On the exchange page I am only offered 781250 XRP's - giving me an exchange rate of 0.0064

The rate on the exchange page shows 0.00608 for 1 Euro  therefore I calculate I should get in the region of 822368.4 XRP's a difference of 41118.4 XRP's.

Gatehub say they charge 0.2 percent for their fees which is either 10 Euro or 1644.7 XRP's approx

Not a difference of 41118.8 XRP's.   THATS A VERY LARGE DEVIATION (see response email below)

Now I am being advised on GateHub to use the trade page (see below their email reply)  -  whilst ripple advise to use the Exchange page.

Can anyone help with this and please any advice how to use the trade page.  It appears complicated to me and some clarity would be appreciated (a school for dummies).

Thanks guys and hope someone can clear this issue

Best regards  LMem.

 

"Klas Urekar (GateHub)

Feb 15, 15:13 CET

Hello, 

The exchange feature displays a minimal sum you will receive and if the order is large, such deviation could happen. 

We kindly advise you to use Trade feature where you can set an exact trade price for larger orders. 

Kind regards, 

Klas Urekar
Support Manager | GateHub Ltd. | gatehub.net"

 

 

 

 

Edited February 15, 2017 by LMem

[Chicxulub]

My understanding is that the "exchange" just does a market trade where as the "trade" function is a regular limit trade (where you set your price. I am not clear myself why a market trade is often such a poor deal as in theory this should be the best price offered/bid. (I imagine bot trading as an effect - someone else please comment/refute).

My experience tells me to just trade at the price that is listed as bets offer/bid if I want a quick deal.

[T8493]

5 minutes ago, Chicxulub said:

I am not clear myself why a market trade is often such a poor deal as in theory this should be the best price offered/bid

 

Because of the low liquidity (you can't buy large amounts of XRPs at the price X because not enough sellers are prepared to sell you XRPs at the price X).

 

Edited February 15, 2017 by T8493

[LMem]

Yes. I agree. But still don't understand why after paying the 0.2 percent fee you cannot buy at the current market rate. 

In fact you are penalised for buying this way in 

thanks very much for your reply 

LMem

[Chicxulub]

2 minutes ago, T8493 said:

Because of the low liquidity (you can't buy large amount of XRPs at the price X because at the not enough sellers are prepared to sell you XRPs at the price X).

 

yes agree that you can be misled by a small offer/bid price and if you then try and trade a larger vol you may not see the real price depth and you may get a price that is a lot worse. But actually I agree with LMem as I have had the same experience where I have double checked there is adequate mkt depth and then exchanged and still got a crap price...

Edited February 15, 2017 by Chicxulub

[kanaas]

4 minutes ago, Chicxulub said:

My understanding is that the "exchange" just does a market trade where as the "trade" function is a regular limit trade (where you set your price. I am not clear myself why a market trade is often such a poor deal as in theory this should be the best price offered/bid. (I imagine bot trading as an effect - someone else please comment/refute).

My experience tells me to just trade at the price that is listed as bets offer/bid if I want a quick deal.

Indeed. Actually with a market order you say: I'll buy all best demands from the orderbook to fill my order .... Normally when you're OK with present market price on a high liquid market there's no problem. But with insufficient liquid, your market order will buy to deep into the order book at to high prices.

[LMem]

Like most of us I think that XRP's are the future.  Its potential is huge if adopted on a global scale...... !!

If I want to trade I agree that I have the current market forces to contend with - i.e I will only be able to buy at what the seller is willing to sell at.

What is confusing is that Ripple have "X" amount of XRP's to sell to us but GateHub (for example) will NOT sell XRP's on the exchange page at the current market value. 

Even though they charge a 0.2 percent fee for this service.  The offer, if you want to use exchange, is approximately 20 percent higher than the current market value.  WHY ?? 

Especially as I am already being charged a fee of 0.2 percent (nominal I agree) to buy this way.  This is what is advertised so surely this is what should be delivered.

Arguably an exchange for the current market value of XRP's is NOT dependent on what the seller wants to sell for.  It is a price for product deal.  This is the price take it or leave it and I charge 0.2 percent if you want this deal.  

Or at least should be and who keeps the difference in XRP's (or money) you are losing out on ????. 

 

LMem

 

 

Edited February 15, 2017 by LMem

[T8493]

12 minutes ago, LMem said:

What is confusing is that Ripple have "X" amount of XRP's to sell to us but GateHub (for example) will NOT sell XRP's on the exchange page at the current market value. 

 

1

I doubt that GateHub is selling XRPs. Other market participants do.

Why should GateHub sell you an arbitrary amount of XRPs at some "current" price? (this is not Forex with brokers, etc.)

 

Edited February 15, 2017 by T8493

[LMem]

Hi T8493

Thanks for the reply.  All input is welcome.

My point:

GateHub offer me XRP's on the exchange page at a given rate .  When I try to buy at the given rate I cannot.

I don't mind who is selling the XRP's and what GateHubs relationship with Ripple is.  I am just asking to buy at the advertised rate and am willing to pay the advertised fee for doing so.

If YOU went to a shop (for example) to buy a product and the rate was 20 percent higher at check out (than advertised) with NO reason given I guess you would soon be asking why ?

Thanks anyway again for your reply

Regards
 

LMem

 

[JoelKatz]

Usually the best way to exchange currencies immediately is to make a payment to yourself. Experiment with the amount to send and reduce it if you get a bad rate. You can then wait and make another payment to yourself. You can also place an offer on the books at the prevailing rate and wait for it to get filled. Buying down a single order book is not a good strategy.

[ripplerm]

12 minutes ago, LMem said:

My point:

GateHub offer me XRP's on the exchange page at a given rate .  When I try to buy at the given rate I cannot.

I don't mind who is selling the XRP's and what GateHubs relationship with Ripple is.  I am just asking to buy at the advertised rate and am willing to pay the advertised fee for doing so.

If YOU went to a shop (for example) to buy a product and the rate was 20 percent higher at check out (than advertised) with NO reason given I guess you would soon be asking why ?

you mis-understood the function of exchange page.... the figure there is NOT an offer/advertised rate, nor a price-tag, agreement, or anything from Gatehub.

the number simply show you the approximate rate of current trading market... just like a stock price ticker.

when u hit the exchange button, what the wallet do is just create a payment that eat up the market orders on the RCL... it has nothing to do with Gatehub except that u are paying with its EUR-iou which charged you 0.2% of payment-fee.

[LMem]

Thanks Ripplerm

That explains it perfectly.  As always we live and learn.

Thanks also to JoelKatz  - that's a good strategy...

Appreciate ALL the input in this post

LMem

[tulo]

If you want to receive XRP at that price you can place an offer in the trade tab and wait for the offer to be taken by others. But be careful that if the prices move it could never be taken.

But I agree that it could be misleading for people not used to markets, exchanges.

Edited February 15, 2017 by tulo

[LMem]

Thanks Tulo

Yes it is misleading and glad for sites like this where people can put you on the "right path".

Much appreciated

LMem

[panmores]

GateHub offers very bad EUR exchange rates, and guess for USD it's the same, but it isn't transparent at all.

The 0.2% commission is nothing compared to the exchange earnings they get.