Ask and Bid on Ripple

[ocwxc]

I have a doubt:

I already have ripple configured to trade.

There is an Bid of 6000 XRP, an Ask of 6400 which leads to a 400 spread (not real quotes, just an example)

If I want to buy BTC, I put 1 BTC x 6005.
The Bid climbs to 6005.
But... it stays there... then, someone puts a Bid for N BTC @ 6006 and I get to second place.
Why?

Can someone please enlighten me on this subject?

[OnkelPaul]

As always on a market, if nobody takes on your offer even though it is currently the best one, and somebody else makes a better offer, your offer becomes second-best. This is nothing peculiar to ripple, it could happen on Mt.Gox or any other exchange as well.
With a small spread and bigger volume, it's less likely, but on ripple there is very low trade volume and often large spreads, so it can and will happen all the time.
Remember that ripple is beta, don't expect it to have huge markets yet. If you can make a good trade, fine, but you should not depend on it.
Especially you should not count on XRP exchange rate being favorable for your trade goals, Opencoin will release more of them when they think it's the right thing to do.

Onkel Paul

[ocwxc]

Hi!
Thank you for your explanation.
Just one more question.
Opencoin are the people behind ripple, am I right?

[webr3]

The currency pairs are round the wrong way in the ripple client.

You just asked to buy 1 BTC for 6005 XRP. You want to do the opposite.

"Sell" 1 BTC for 600x.

Yes OpenCoin are behind ripple and develop the client, libraries, and server.

[ocwxc]

Sorry webr3, I don't understand.
I have 6200 XRP and want 1 BTC, how should I sell 1 BTC?
I don't have 1 BTC to sell, I want do exchange XRP by BTC.
Why am I confused?

[OnkelPaul]

You offer to buy 1 BTC for 6005 XRP, that's ok.
Other BTC sellers offer less, so your offer is a good one.
However, the cheapest BTC on sale are 6400 XRP, so no trade happens (you are not willing or even able to pay 6400 XRP).
You will only be able to buy a BTC when someone wants XRP really desperately and is willing to accept your offer of 6005, or you reduce your expectations and buy as much BTC as your XRP will get you (less than 1 in this case).

Onkel Paul

[ocwxc]

Oh! now I see!!
The "price" somehow is the Ask, not the Bid!!
Now I get it, that's why my order sits there waiting for some "luck"

Thank you all for clearing this to me!

[OnkelPaul]

As far as I know the simplest way to exchange currencies on ripple is to send yourself some amount of the target currency. Ripple will try to find a path and will tell you how much you have to pay. Of course, this is always based on current offers, so you might pay more than if you create your own offer and wait for someone to fill it.

Onkel Paul