Football Index IPO’s: The Complete Guide
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To keep up with new emerging talent in the Footballing world, Football Index need to ensure that New Players are added onto the platform regularly.
IPO’s are the way Football Index add fresh talent to the Index.They are exciting, but they have their drawbacks.
You need to read on.
What does IPO mean?
IPO is an abbreviation for Initial Public Offering. When Football Index perform an ‘IPO’, they add a new player onto the platform.
What is the Football Index IPO process?
Prior to the IPO, Football Index will release a list of players which are to be added.
This list includes the Player Details, such as position and club, but also includes important information such as the Entry Price & a Time of Entry.
What is the Entry Price?
Football Index decide the entry price of a player before he enters the platform. This is performed by the Trading team, who assess what price he should join at. They have to take into consideration not to make the entry price too low, as it could de-stabilise the market, with other traders selling their holds to purchase shares in the new one.
Often, they set the prices high, which is better for the sustainability of the Index.
Ready to Start Trading?
When you register at Football Index, you can claim a special offer. This will enable you to trade risk free, where any losses up to £500 are refunded, as cash. Remember to use code FIA when you sign up.
What time will they enter?
Each player has a designated timeframe, but this is a wide window, not an exact minute.
For example, Player A may have an entry time of between 10:00AM-12:00PM, whereas Player B would have the 12:00-14:00 time slot.
Multiple players have the same timeslot on any given day, so expect a few players to be added!
There are multiple ways to profit from the player promotions Football Index offer.
Benefits of Football Index IPO’s
IPO’s ensure that the latest talent is added to the platform, keeping it alive & entertaining.
It’s often quite frustrating seeing a potential talent on the pitch, without the ability to own him on Football index.
With IPO’s, you are able to own more players.
Football Index value the entry point very successfully.
I’ve laughed a few times at players which were IPO’d at a high price, maybe even been annoyed sometimes.
However, in the long term, the values seem fair. One I seem to recall is James Milner, I’m sure he was IPO’d at £2.10, with lots of ridicule on twitter.
18 months later he’s the equivalent of £2.50, which is a significant rise for a player that hasn’t set the Index alight!
These are; Instant Flipping, Hold to Flip, Hold for Dividends, Keep Long Term
Instant Flipping – This is the most common trading technique. Buy Low, sell high as quick as possible. This is a short term trade, typically taking minutes. If done perfectly you can make a minimum of £70.
Advantages – Quick and Easy money, No money is tied up in your portfolio.
Disadvantages – Not a guaranteed method, you may not get the shares at the price you wish.
Hold To Flip – This is another short term trade. However, you let the market settle to realise players true market value, then release him to the market.
Advantages – You can avoid the Promotion chaos where the players prices jump around.
Disadvantages – You may be able to sell the player at a higher price during the ‘crazy’ periods, rather than sit on your investment and wait.
Advantages – Your Return on Investment would be great, as you can earn dividend payouts whilst keeping the player in your portfolio.
Disadvantages – If the player doesn’t return dividends you won’t have any return, his share price could potentially drop. Although, presuming you purchased during a low price, you should never lose money, just potential profit.
Keep long Term – This is another long term trade. Similar to holding for dividends, but you also expect this player to exceed their current ability and become a world class player, thus enhancing the share price. With this method, you expect to earn dividends and sell for a profit eventually.
Problems with the Football Index IPO Process
I run a transparent blog. Whilst I want Football Index to be successful, to improve you must improve on the flaws.
When IPO’s are announced, they tend to harm the market somewhat.
Players tend to sell their current holds, to free up money to get the new releases.
This can harm your portfolio when traders dump certain players that you may hold.
The IPO process doesn’t seem fully ‘fair’.
The current process is fastest finger first method, which means if you find him first, you will get the best possible price.
However, this opens the platform up for Automated Scrapers (Bots), who can query the platform up to 100 times per second.
Compared with a human, who would take up to 5-6 seconds for a single check.
The more players that are on the platform inevitably mean you have less chance to win.
Football Index IPO – Conclusion
Everything has it’s drawbacks. I am a huge fan of IPO’s, although I must admit I rarely get involved in them.
I applaud Football Index for setting the prices the way they do. The IPO prices are generally expensive, which is a HUGE must for the platform.
WHY? Most traders use IPO’s to flip players, they aren’t interested in actually holding them long term.
If a trader does fancy a player, they would sign him up regardless. So the high priced IPO’s actually help to stabilise the market somewhat, as fewer people will be interested in getting on them.
Let’s look at it the other way, if they were to release a player onto the platform (with decent prospects) for just £0.01, every trader on the platform would want to get involved, and it would end a bloodbath.
IPO’s are a must for the platform, as it needs to ensure every player from the eligible leagues is available to purchase, aswell as talents from more obscure leagues.
I don’t really like the idea that traders take advantage of IPO days by flipping for a profit, nor do I really like them! But they are vital for the platform