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Post by GSV3MIaC on Mar 4, 2015 16:03:18 GMT
Echoing a poll from the ReBS sub forum, which has been somewhat rubbished because there electorate is rather small over there (and also perhaps biassed since ReBS uses 1% steps). The question is, for sites which use some sort of bidding process (with an end date/time) what bid rate step do you think would be best? A small step makes it possible for last minute bidders to always get in just a small amount away from the best rate (unless the site collapses under the load), a large step makes it easier to guess the right answer early on (and with the knowledge that if you do get knocked out, at least it'll be by some worthwhile margin, which you might not have wanted to accept anyway). I also offer up a wildcard option - dynamic bidding, or a bond style auction where everyone who is in at the end gets the best (marginal) rate .. this encourages you to bid early, at your 'best and final' (IMO). Does mean Granny-low-bid will not be subsidising the average rate though.
This probably doesn't apply to sites like RS, where if you are off by a tad you can correct it anytime and not lose out, or sites where the rates are all fixed anyway (although even then someone has to fix them, so maybe the step size still matters), or sites (like ZOPA) where the rate gets massaged around you.
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bigfoot12
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Post by bigfoot12 on Mar 4, 2015 17:51:46 GMT
0.01% with true dynamic bidding, I don't care if everyone gets their bid or the marginal rate. Dynamic bidding doesn't hurt early bidders, and gives nothing to snipe at.
If I put the effort to read all the details I am sure to get what I want at the best possible rate, or nothing if the rate goes too low for me.
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Post by davee39 on Mar 4, 2015 18:19:09 GMT
On FC I do not mind being one or two points below the best bid - the loan will still sell at an appropriate rate. Larger steps would make this much less attractive. Bidding would work on FC if they had decent software and hardware. Perhaps they could use a timer to allow listings to start during the evening or at weekends. Alternatively reduce the bids by flexing the max bid according to band, or continue with the current policy of listing so few loans that they end up at MBR anyway.
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Post by GSV3MIaC on Mar 4, 2015 18:59:34 GMT
0.01% with true dynamic bidding, I don't care if everyone gets their bid or the marginal rate. Dynamic bidding doesn't hurt early bidders, and gives nothing to snipe at. If I put the effort to read all the details I am sure to get what I want at the best possible rate, or nothing if the rate goes too low for me. Yep, I could buy that, although the 0.01% just makes the math harder for the folks generating the interest calculations (I mean that's <£1 a month on £200k, and on your £20 loan part you wouldn't even see it) .. but assuming everyone was halfway sane, and started off at maximum rate, and bid down to their fallout point, they would all get the marginal rate anyway .. or are you assuming some dynamic bidder would stick in an '8% down to 6%' bid on an auction which was currently offering 13%?? I mean why would you, when '13% down to 6%' would get you a better result (unless the rebid steps are larger than the normal increment)?
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bigfoot12
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Post by bigfoot12 on Mar 4, 2015 19:28:39 GMT
Yep, I could buy that, although the 0.01% just makes the math harder for the folks generating the interest calculations (I mean that's <£1 a month on £200k, and on your £20 loan part you wouldn't even see it) .. but assuming everyone was halfway sane, and started off at maximum rate, and bid down to their fallout point, they would all get the marginal rate anyway .. or are you assuming some dynamic bidder would stick in an '8% down to 6%' bid on an auction which was currently offering 13%?? I mean why would you, when '13% down to 6%' would get you a better result (unless the rebid steps are larger than the normal increment)? There are some people who do strange things on platforms were there is no need. Ignoring them, I would expect that roughly half the people on average would get 0.01% better than the other half, say 10.79% and 10.78%. I know there are, but there shouldn't be people doing interest rate calculations. It should be automatic, calculated to some high level of precision (possibly rounded to the nearest penny). It shouldn't matter what the rates are. Everyone getting the same rate might make the secondary market run better.
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Post by GSV3MIaC on Mar 5, 2015 17:07:10 GMT
Yep, I guess it is true that there would still be 'an edge', with some folks below and some above (presumably the earliest dynamic bidders would be in the top half, at least that'd be how I'd program it .. i.e. if you were in at 13% and someone's 12% knocked you out, you'd go in the 12%s in a 'safer' position than them (I'm still on 1% steps .. avoids typing the decimals, but you can have 13.00 and 12.99 if you like. 8>.). One rate for all would sure make everything (including the SM) rather simpler.
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