Unit 3 · Where the money flows
What does "can’t convert" mean in the FX simulation?
- 2 min read
- 4 sections
- 3 questions · +25 XP
It means almost no orders for that token on the public market, not that the token is unused on the XRP Ledger.
We place a test order and read the result
Each day we dry-run a $1,000 and $10,000 order to RLUSD from a large holder’s wallet. Nothing is executed. We compare what would arrive with the ECB reference rate.
Where the cost comes from
With no direct orders, the ledger routes token → XRP → RLUSD. If the token → XRP market is small, most of the value is lost there.
Tokens that show "can’t convert"
Tokens issued for institutions, settled wallet-to-wallet, put nothing on the public market. EURCV, for example, has all 10 million units in a single wallet. They show as unconvertible here but are still used for settlement.
Retired tokens show the same result. The grade answers "what would I get on the public market right now", not a verdict on the currency or issuer.
Permissioned DEX is not included
Orders inside a permissioned DEX are only usable by credentialed wallets, so they are not in this simulation. Costs for institutions trading there may differ from ours.
See it on the site
Related terms
- Conversion cost
- How much less you receive on a $10,000 conversion than the ECB reference rate would give. Under 1% counts as low cost.
- Slippage
- How much more you lose converting $10,000 instead of $1,000. Smaller order books and pools mean more slippage.
- Auto-bridging
- The ledger automatically routes a trade through XRP when that gives a better rate, even if the order never mentions XRP.
- AMM pool
- A pool holding two assets. You can trade against it directly even when no one has placed an order.
- Decentralized exchange (DEX)
- The exchange built into the XRP Ledger. Anyone can place orders and the ledger matches them.
- Permissioned DEX
- A market where only wallets holding a credential can trade, built for regulated institutions.