blonde poker forum

Dom, aka "Nico29" - has a staking Thread up.

He has PM'd me for advice, but I don't know the correct answer - can anyone assist, please? I'm asking on his behalf as it is urgent, & Dom is currently Offline.

He wants to "be right" by both parties.

Here is his question to me.....

"....I've found a very decent exchange place in london which doesn't charge commision and gives $1.565 per £.

However i'm new to this kind of thing with staking as i've never done one abroad before.

I'd like to ask your advice, is it my responsibilty to take the hit on the exchange here?

Just thought you'd be more experienced of the 'done' thing in such a case.

I haven't pm'd anyone yet on this as i'd like to know exactly what to charge.

Basically according to expedia/x.e the exchange rate is $1.58 to the pound.

Therefore in our case for example if i buy at the set rate i'll be charged £895.

However if i quote you the internet rate of 1.58 dollars to the pound it will be £886.

I know it's only £9, i guess i just wondered as if i sell 65% i'll be hit for nearer £60.

Also i'm worried in case the shop rate changes drastically and i lose double that amount or something.

I don't mind either way i'd just like to know the done thing. :)

Staking thread is in $ so it is peoples responsibility to ensure Dom receives that exact amount in $, and in the same way they get paid any winnings in $ and it is up to them to take the hit.

Dom can obv help with exchanges but I dont think he should be out of pocket as the staking prices are clearly in $ and prizes will be paid in $

 

Although this is technically correct, I have no doubt that I'd suck up £60 for people who parted with money to show faith in me in pursuit of a return. Bit like asking whether you should tip after receiving  good service. You don't have to but it feels good to

The "internet rate" isn't an available rate (unless you are a bank trading inter-bank for zzillions or you are trading with mates coming back from USA and want to get a fair price)

$1.565 is a decent rate today.

IMO, it's one more thing to get right with the staking request at the time of the request.  Either ask people to give physical dollars, or ask for sufficient ££ to be able to convert into $$ at the rate which is actually available.  At that point, the horse does accept some currency fluctuation,(removed if they actually buy the $$ that day at that rate)  but that can move for or against them and isn't going to be very much in any case.

Likewise (as I asked Dom in his thread) it is fine to agree up front what the procedure will be for dollars on the return leg.

I don't think it is fair for a backer to ship "whatever it says on xe.com" as Dom doesn't have a fair shout of turning it into that many real dollars.

That said, if someone is charging a premium, they could stipulate where appropriate if the vig is to cover perceived edge, travel costs, currency costs or whatever.


Cliffs:  Dom should fix the exchange rate (1.565) and make sure people have sent him enough  ££ at that rate.  On the return leg, Dom should offer players the choice of $$ on collection, or at an exchange rate available at that time.

agree

Agree with Dom fixing the rate at what he can get.

Dom, it might be worth checking these guys out, maybe they can do a bit better... (I'm assuming you're collecting in London)

http://www.iceplc.com/cgi-bin/live/ecommerce.pl?site=iceplc.com&state=survey&action=display&survey=10&menu=branchcollection&suppress_header=yes&zone=waterloo

I had a look on 2p2 staking forums and from what I could tell, the horse locked in the rate when they made their OP (or in this case, when Dom confirmed), and provided amounts in $ and £. They all generally used xe.com rates.

The other factor that I noticed mainly was that the exchange rate was fixed for both payments and winnings so that if Dom set the exchange rate at 1.565 when we paid, then we would get $1.565 to £1 in November, whether the rate then was $1.525 or $1.625.

Am happy to accept whatever rate Dom sets (naturally assuming he wont take the proverbial) but that rate should be locked in for payouts as well should Dom bink.

Absolute balls, and ridiculous beyond my comprehension

Why?

It protects both horse and staker dependent on the global markets.

Unless I have misread it it only protects the staker.

Dom takes payments at 1.54 and goes to play a $1.54 tourney, when he plays the exchange rate is 1.54, he wins the lot wiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii $154
Gets home and has the bad news that the rate is now 154 so he changes his $154 for a pound coin and has to pay they guy who staked him the £1 in the first place £100

I think you might have misread it.

Horse has a package valued at $10,000. 1%=$100.

When staker buys 1% rate is 1.54 - his cost is £64.94.

Package ends 4 weeks later. Exchange rate is now 1.64. Horse has $50,000 to share. 1% is now $500. Staker wins 5 times his buy in, which is £324.70.

However, at new exchange rate, $500/1.64=£304.87. Despite staker winning 5 times his buy in, he loses ~£20. Horse gains that £20.

However, should the exchange rate be 1.44, that $500 would now be worth £347.22. Staker gains £22.52 (£347.22-(£64.94*5)) which Horse has to pay out of their winnings.

Lol I see what you meant, i thought you meant it was fixed at one rate for buying and returning, what you meant was it is a fixed rate for buying then another fixed rate for returning :)

Yeah, that was what I meant. x.xx for buying then same rate on return.

I am defo having a thick day, so in your example above which payment amount are you advocating as fair?

The one where both parties agree the same rate for both transactions.

Thanks for all replies on this.

However I'm not sure i like agreeing on the rate for returning.

It is never that easy to cash in dollars at a decent rate when back home from my experience.

Way too much variance for my liking.

I'm going to go with the following:




Of course £60 isn't a huge issue if i get hit by that. It's just i wanted to know the correct procedure in such cases as these, it could have ended up as much more than that if i set it at 1.58 and then could only get 1.54 or something.

Although i appreciate all good faith in me by those that buy pieces, i believe they are getting decent value for their purchases.


X.e.com now has the pound worth $1.565 today. As i know i can get this commision free in london i'll be setting that as the rate for purchases today.

As long as if the rate goes the other way the payment would have adjusted the other way then it doesn't really matter how you do it.

The stnd for these spots is you can charge in £ the rate you buy your $'s at.

And when you pay people you give them the same rate you get - it's in your interests to get better rates obviously.

As soon as you have money out it vegas you can tell people what rate they are buying the dollars at - this is the only fair way, obviously if people can give you what they owe you in $, then that is ideal. This is the fairest way

PM me before you send money anywhere as i can prolly help Dom.

one issue here is the return rate (for 2 reasons)

1. it might change (obv)

2. it is never the same as buying (always)


you should either pay back in $ or stakers MUST accept whatever excahnge rate is at the time of having the win (and reasonable short period therefater to change it up).

its pretty simple imo

Whatever the rate Dom sells his dollars back at is the rate everyone gets, Dom's selling his own money too, so will be trying his hardest to get best rate.

Nothing is fairer, everyone buys the same and sells the same.

I think Dom should ask his girlfriend, and see what she thinks ;)

Shush, no way, we've only just got her onside.

Are you coming to vegas or not ya big pansy?

No :(

You still with miss x? Ask her! :)

Go on get out there ffs mate.

haha, I wish I was that simple son.

Can't believe my 'friends' Dean & Gavin are going without me. I mean, we were a team in the summer, it just won't be the same for them in Novemeber. I hope they have a shit time, but obv, don't tell them that.