bg
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Post by bg on Aug 20, 2020 9:44:40 GMT
As SteveT says there is a spread. The spread is the difference between the best bid price and the best offer price. It has nothing to do with price movement, that is a different thing. You can read a definition here |
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cb25
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Post by cb25 on Aug 20, 2020 11:15:51 GMT
Back on planet flip, where we don't care about whether there is/isn't a spread, I've just bought at 5.9% discount and sold at 5.6%. Yes, small margins, but a constant stream, whilst accepting I could get stuck with what I buy.
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blender
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Post by blender on Aug 20, 2020 12:17:15 GMT
Sorry I caused confusion when starting to talk about spreads. Nothing to do with fees. Yesterday, when I decide to sell a small excess part of my wonderful account, I checked and the best rate at which I could sell immediately was 6% discount. But if I wished to buy I could buy immediately at 5.5% discount. I am no expert but I call that the bid-offer spread - as SteveT. So I offered a few £k at 5.6%, and someone (or their pet bot) matched it with a bid and it was gone. The deal was done at 5.6%, from both viewpoints, and the bid-offer spread remained as it had before. I could have offered 6% discount, but I think that would have been silly. Sorry if my terminology is wrong. It seems the market is working well, but sellers have to be a bit canny.
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IFISAcava
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Post by IFISAcava on Aug 20, 2020 12:26:05 GMT
Back on planet flip, where we don't care about whether there is/isn't a spread, I've just bought at 5.9% discount and sold at 5.6%. Yes, small margins, but a constant stream, whilst accepting I could get stuck with what I buy.For me that is too big a risk for the buy/sell spread. But in essence you are being the market maker here - could be a good earner if you do it full time!
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cb25
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Post by cb25 on Aug 20, 2020 12:56:51 GMT
Back on planet flip, where we don't care about whether there is/isn't a spread, I've just bought at 5.9% discount and sold at 5.6%. Yes, small margins, but a constant stream, whilst accepting I could get stuck with what I buy .. But in essence you are being the market maker here - could be a good earner if you do it full time! When I started doing this, the phrase "picking up nickels in front of a steamroller" came to mind.
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Post by angel19 on Aug 20, 2020 14:22:55 GMT
Back on planet flip, where we don't care about whether there is/isn't a spread, I've just bought at 5.9% discount and sold at 5.6%. Yes, small margins, but a constant stream, whilst accepting I could get stuck with what I buy. I would double check to be sure I am getting what I think. Buy £100 at 5.9% and I get £105.90 in my piggy bank. Then sell £105.90 at 5.6% discount and I get back £99.97!
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blender
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Post by blender on Aug 20, 2020 14:47:15 GMT
Back on planet flip, where we don't care about whether there is/isn't a spread, I've just bought at 5.9% discount and sold at 5.6%. Yes, small margins, but a constant stream, whilst accepting I could get stuck with what I buy. I would double check to be sure I am getting what I think. Buy £100 at 5.9% and I get £105.90 in my piggy bank. Then sell £105.90 at 5.6% discount and I get back £99.97! Some double checking definitely needed. I make it 32p profit - hey, that's nearly half a second class stamp! The people I worry about are those who buy at 5.6% and sell at 5.9% - forgetting it's a discount.
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dead-money
Rocket to the Moon
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Post by dead-money on Aug 20, 2020 15:08:03 GMT
Yep you make 1.09% return on your stake for each 1% positive difference between buying and selling discounts.
I made ~£700 in first 24 hours, but since then not being tempted to add to Access accounts.
Currently awaiting some 'white smoke' or other pronouncement from AC on the future of the Access and Manual lending accounts.
At the moment they just seem to be in run down and it's a game of past the parcel on a diminishing pool of good and bad loans.
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cb25
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Post by cb25 on Aug 20, 2020 15:11:42 GMT
I would double check to be sure I am getting what I think. Buy £100 at 5.9% and I get £105.90 in my piggy bank. Then sell £105.90 at 5.6% discount and I get back £99.97! Some double checking definitely needed. I make it 32p profit - hey, that's nearly half a second class stamp! The people I worry about are those who buy at 5.6% and sell at 5.9% - forgetting it's a discount.
Using £100 to buy at 5.9% cash buys you £106.27 worth of loans (£100/0.941), then sells for £103.19 (£106.27 * 09.44), approx 32p profit as blender says. Small margin, but can sometimes be done several times per day.
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blender
Member of DD Central
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Post by blender on Aug 20, 2020 15:21:27 GMT
£100.319? Larger deals in than £100, I hope.
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cb25
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Post by cb25 on Aug 20, 2020 15:22:53 GMT
£100.319? Larger deals in than £100, I hope. Enough to make it interesting 
Approx 1/3% interest might seem too small to bother with, but it's from just one day. Putting that in perspective, a 9% loan pays approx 1/40th% per day.
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Post by queenvictoria on Aug 20, 2020 16:18:29 GMT
Apologies for being dense but how do you search for loans being offered at a discount?
I can see the marketplace with a long list of loans for sale but I cannot see any discount info.
Thanks
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cb25
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Post by cb25 on Aug 20, 2020 16:39:35 GMT
Apologies for being dense but how do you search for loans being offered at a discount?I can see the marketplace with a long list of loans for sale but I cannot see any discount info. Thanks Click on the 'Invest' button on any of the Access Accounts and it should show you the going rate
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Post by queenvictoria on Aug 20, 2020 17:41:22 GMT
Apologies for being dense but how do you search for loans being offered at a discount?I can see the marketplace with a long list of loans for sale but I cannot see any discount info. Thanks Click on the 'Invest' button on any of the Access Accounts and it should show you the going rate Got it. Thanks very much cb25.
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dead-money
Rocket to the Moon
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Post by dead-money on Aug 21, 2020 8:26:06 GMT
£1,000 buy / sell
Thu 20/08/20 9am 5.7% / 6.0%
5pm 5.8% / 6.0%
Fri 21/08/20 9am 5.8% / 5.9% 5pm 5.8% / 5.9%
Sat 22/08/20 9am 5.6% / 5.9%
5pm 5.7% / 5.9%
Sun 23/08/20 9am 5.8% / 5.9% 5pm 5.8% / 5.9%
Mon 24/08/20 9am % / %
5pm % / %
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