FMX Trading Tutorial for IMVU

Using an exchange can be a bit overwhelming initially, but its not that hard on you get used to it, and definitely well worth the savings. We hope this tutorial helps. :) If you have any suggestions on how we can improve the tutorial, please tell us at feedback@firstmetaexchange.com. ### ###

Contents
Click to access the relevant sections.

Section 1: Selecting a currency pair .............................................................................................................. 2 Section 2: Understanding the open order tables and exchange rates ......................................................... 3 Exchange rates in IMVU terms ............................................................................................................... 3 Section 3: Placing an order, market and limit orders ................................................................................... 4 Example 1: Buying 100,000 credits at the best price available now ......................................................... 4 Example 2: Buy 100,000 credits at 2250 IC/USD or better ....................................................................... 5 Example 3: Sell 100,000 credits at the best price available now .............................................................. 6 Example 4: Sell 100,000 credits at 2195 IC/USD or better ........................................................................ 7 A note about floating exchange rates:...................................................................................................... 7

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Section 1: Selecting a currency pair

Click on the Exchange tab. You will see a list of currency pairs for all the currencies that are traded on the exchange. The currency code for IMVU credits is IC. To buy or sell IMVU credits, select USD-IC or EUR-IC.

Figure 1: Currency pair table

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Section 2: Understanding the open order tables and exchange rates

Once you select a currency pair, you will see these tables at the bottom of the page:

Figure 2: Open order tables

These are the open order tables. They show the orders that are currently available on the market. Orders that have already been filled do not show up on the open order tables. The Sell IC table shows the quantity and exchange rates of credits available for sale. The Buy IC table shows the quantity and exchange rates of credits that others wish to purchase. From Buy IC table: People are willing to buy 26,334 credits at 2200 IC/USD 19,890 credits at 2210 IC/USD 70,000 credits at 2250 IC/USD and so forth.

From Sell IC table: There are 20,000 credits for sale at 2199 IC/USD 100,000 credits for sale at 2190 IC/USD 5,730 credits for sale at 2183 IC/USD and so forth.

Exchange rates in IMVU terms

Selling credits If a user sells at the rate of 2199 IC/USD, this means that he will receive 1 USD for every 2199 credits that he sells. If he sells 100,000 credits, he will receive 100,000 / 2199 = 45.48 USD Buying credits If a user buys at the rate of 2200 IC/USD, this means that he receives 2200 credits for every 1 USD that he pays. If he buys 50,000 credits, he will pay 50,000 / 2200 = 22.73 USD

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Section 3: Placing an order, market and limit orders

The exchange works by matching up orders between buyers and sellers, best possible price first. A match happens when a buyer and seller can agree on a price (taking into account the spread1.) We will see how this works by examples. In the following examples, assume the spread is 0.

Example 1: Buying 100,000 credits at the best price available now

A market

order helps you find the best

price currently available in the market and is often filled immediately. Recall the sell IC table earlier:

Figure 3: Order form - Buy 100K credits, market order

Thus, 100,000 credits will cost approximately: + 20,000 80,000 / 2199 / 2190 = = 9.09 USD 36.53 USD 45.62 USD

However, you will not need to do the calculations as the exchange estimates the cost for you.

The spread is First Metas revenue for providing this service. It is essentially the difference between the buy and sell prices. If for example the spread is 5 IC/USD, trades will be filled when the sellers rate is at least 5 IC/USD more than the buyers rate, which means that First Meta makes 5 credits for every USD that is successfully traded. Best seller offer: 2200 IC/USD Best buyer offer: 2195 IC/USD Trade is filled. Best seller offer: 2200 IC/USD Best buyer offer: 2198 IC/USD Trade is not filled and gets queued up on the open order table.

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Example 2: Buy 100,000 credits at 2250 IC/USD or better

Figure 4: Order form - Buy 100,000 credits, limit order 2250 IC/USD

If the buy wishes to get a better rate and is willing to wait a little longer, he may place a limit

order which

fills the trade only at the specific rate or better. In this example, he wishes to get no less than 2250 credits for every USD hes paying. Thus, 100,000 credits will cost a maximum of: 100,000 / 2250 = 44.44 USD

Since no seller is currently willing to accept this rate yet, the order will get queued up in the Buy IC table.

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Example 3: Sell 100,000 credits at the best price available now

Figure 5: Order form - Sell 100,000 IC, market order

Recall the Buy IC table earlier:

Thus, 100,000 credits will yield approximately: + + 26,334 / 2200 19,890 /2210 53,776 / 2250 = = = 11.97 9.00 23.90 44.87 USD USD USD USD

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Example 4: Sell 100,000 credits at 2195 IC/USD or better

Figure 6: Order form - Sell 100,000 IC, limit order 2195 IC/USD

100,000 credits will yield a minimum of: 100,000 / 2195 = 45.56 USD

Since no buyer is currently willing to accept this rate yet, the order will get queued up in the Sell IC table.

A note about floating exchange rates:

On a liquid exchange, trades are constantly being filled, which means prices fluctuate from second to second, even from the time the order is submitted to the time it is executed. Thus is it impossible to give an exact quote. However, the actual exchange rate executed generally will not deviate too much from the estimated. One way to establish more certainty is to place limit orders instead of market orders. This way, we will execute the trade only at your rate or better. ### ### Think this tutorial can be better? Tell us at feedback@firstmetaexchange.com. Page | 7