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Am I correct in understanding that when adding cards to a FS/T list, the person adding the cards does not get a match alert if anyone has those on their wantlist, but the person who has the cards on their wantlist will get a match alert? 

You both get match alerts if they are turned on.

I quit using this feature, but it seems like there was a slider to switch between the two.

Like budler said " if they are turned on ".....I have turned this feature off, as I was getting too many emails. 

I turned mine on to try to help answer this.  If I get a match at 5:00 I'll see if I remembered right.  But I thought you could switch between "my want list matches new FSFT cards" and "my FSFT list matches new wants".  I think you get notifications for both.  That's how I understood your question.

Also, I'm trying to help bury a different conversation that needs to end, by responding to other stuff.

I don't believe you get a notification as the person who posts cards for FSFT.  I posted almost a complete set of cards for a particular set and did not get any matches, even though I could see there were about 50 people who had cards from the set on their wanlist.

What is your    "Receive alerts when items on your Wantlist or For Sale / Trade match other members' lists?"  set on  I have mine on daily.   Each morning I see the new ones.

There is also reports under your collection  "Match items on your Wantlist with items on other members' For Sale / Trade lists    Match items on your For Sale / Trade list with items on other members' Wantlists "      There is an issue with the Want list report and Admin knows about it.

If you get an alert and then remove it .  It does not come back.

Ok, it looks like you didn't get an alert because they added before you added.  If I were to add one of those same cards to my want list right now, everyone who already has that card on their FSFT, including you, would get an alert.  But I wouldn't get an alert telling me that you already have it on your FSFT.  The one who adds first gets the alert.  The one who adds second generates the alert to the other person.  That what I make of it after reading my 5:00 alerts, and then adding some new wants.  If I'm wrong, I will know in four minutes.