agent69
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Post by agent69 on Dec 12, 2013 19:10:18 GMT
I think I understand the principle, but am curious as to how it works in detail.
I can dynamically bid on a loan at (say) 15% while agreeing to go as low as 12% if necessary. If the 15% gets knocked out the system automatically rebids for me at a slightly lower rate (if necessary all the way down to 12%).
So, if a £1m loan is fully subscribed by dynamic bidders who all start at 15% (with a fall back rate of 12%), what happens if I place a bid at 12.01%? Is all £1m instantly rebid at 12%?
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Post by mrclondon on Dec 12, 2013 19:27:29 GMT
Yes, AIUI if the whole of the £1m is dynamic bids with a stop at 12%, your (fixed) bid of 12.01% will cause the £1m to drop to 12% and your bid is eliminated. This can lead to some very quick and very sharp drops in the rates on TC. (I'm not that much of an expert on TC so I stand to be corrected by someone with more experience)
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agent69
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Post by agent69 on Dec 12, 2013 20:09:07 GMT
Yes, AIUI if the whole of the £1m is dynamic bids with a stop at 12%, your (fixed) bid of 12.01% will cause the £1m to drop to 12% and your bid is eliminated. This can lead to some very quick and very sharp drops in the rates on TC. (I'm not that much of an expert on TC so I stand to be corrected by someone with more experience) So a couple of queries; - If I bid 12.01% 10 seconds before the auction ends, does the dynamic bidding continue after the end time until they are all at 12%?
- What happens if I bid 11.99% instead of 12.01%?
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Post by mrclondon on Dec 12, 2013 20:21:58 GMT
- What happens if I bid 11.99% instead of 12.01%?
Again AIUI, you would be in with your £1000 say at 11.99% , the very last 15%/12% dynamic bidder loses out on £1000, and all other bids settle at 12%. No idea with regard to the first question though and their software is so poor anything might happen, but I would hope that the dynamic bidding would continue until everything settles out at 12%. This is I believe the reason I lost out on the property loan on the Relendex platform a few weeks ago - dynamic bids were chopped the second the auction expired.
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JamesFrance
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Post by JamesFrance on Dec 12, 2013 21:19:04 GMT
Also the earlier bids are the last to be knocked out. In reality everyone will have a different floor level so it will never happen. What I don't understand is why anyone makes a fixed bid well below the going rate, so ends up with an unnecessarily low rate of interest for their share of the loan. Maybe they don't bother to learn how the system works.
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pikestaff
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Post by pikestaff on Dec 14, 2013 1:16:50 GMT
- If I bid 12.01% 10 seconds before the auction ends, does the dynamic bidding continue after the end time until they are all at 12%?
- What happens if I bid 11.99% instead of 12.01%?
Again AIUI, you would be in with your £1000 say at 11.99% , the very last 15%/12% dynamic bidder loses out on £1000, and all other bids settle at 12%. No idea with regard to the first question though and their software is so poor anything might happen, but I would hope that the dynamic bidding would continue until everything settles out at 12%. This is I believe the reason I lost out on the property loan on the Relendex platform a few weeks ago - dynamic bids were chopped the second the auction expired. Yes is the short answer to the first question (whch I have magically reinstated  ). Whenever a bid is accepted the system completes its calculations and will not accept another bid until it is finished*. Even if the bid is 1 second to close and the calculations take 10 seconds, all of the consequences are measured as of the time of the bid. So yes, you would be knocked out. I have observed this from experience - both good and bad. It's something you need to bear in mind if you are sniping at the end of auctions. My personal view is this is never the right strategy on the primary market. * Edit: They have just announced that they will shortly be implementing bid queuing. When they do, I'd still expect the system to complete its calculations for all bids that are in the queue at the close.
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Post by tybalt on Jan 11, 2014 16:57:24 GMT
You can download auction results after the close. Dynamic Bids retain the time of the original bid. Took me at least half a dozen auctions before I worked out what was happening and why bids say 0.3% lower were almost immediately under bid. Still you do get your money back immediately if the bid is under bid.
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gnasher
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Post by gnasher on Jan 11, 2014 18:16:37 GMT
I would just like to add that the dynamic bidding on TC is excellent, it means that there is no need to hang around and baby sit your bid through any dying frenzy, indeed there is no last minute frenzy as there is no need.
Last minute sniping may have an advantage on the secondary market, but I can see no call for it on the primary.
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pikestaff
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Post by pikestaff on Jan 12, 2014 0:23:05 GMT
I agree. But there is no need to get in early either.
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agent69
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Post by agent69 on Jan 12, 2014 11:24:19 GMT
I would just like to add that the dynamic bidding on TC is excellent, it means that there is no need to hang around and baby sit your bid Big difference to FC where autobid just dumps you in at the bottom level straight away.
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