How do Player Prices Increase or Decrease on Football Index?
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I try to help quite a few people get into Football Index, as it’s a revolutionary platform in my opinion.
One of the biggest misconceptions with the platform is regarding the pricing of players on the platform.
New beginners which join the platform may believe that Football Index control the pricing of the players, but this isn’t the case.
The pricing of players is controlled purely based upon the amount of shares owned by the Trading Community.
For example, Neymar will be a higher price than James Morrison, as Neymar is a much more popular player & many more traders will want him instead of Morrison.
What Football Index do control is the IPO offering price, which I will discuss later down this post.
How many Shares change a Player Price?
Before the Share Split, traders noticed that the amount of shares required to change a players price was 300.
Since the Split, it appears that the amount has changed to 900 shares.
What this means is that where a player may be £0.50, when 900 or more shares are purchased in a player, he would rise to £0.51.
Subsequently, if 900 shares in the player are sold at £0.50, he would move to £0.49.
It’s hard to tell whether 900 is the exact figure, as you can never be sure that you own every Share in a player, at a particular price.
For example, you could be buying shares in a player at £0.50, but another trader also holds a small amount of shares at this price.
It’s not something you actually need to worry about, as it won’t affect your experience on the platform.
It’s just something that’s good to know, as when you buy a player you may see his price rise.
Why do Players Rise in Price?
There isn’t just a single reason for a players rise in price.
The cause for the biggest increase in price is Transfer Rumours.
If a player has very strong rumours to a big club such as Barcelona, Liverpool, Man Utd, Real Madrid then they would see a sharp rise in price.
The reason for this is mainly Media Buzz.
Take a look at Takumi Minamino’s price graph. A few transfer rumours later and he’s risen from £0.87 to £2.30.
He finally settled around the £2.10 mark after the transfer was completed and he won a few Media dividends.
High Match Day Scoring Average
Another cause of price rises is Player Form, in the terms of the Match Day Scoring chart.
If a player starts to score high averages, he will be seen as a potential Match Day scoring player.
Remember, players with higher average scores should win more often.
Why do Players decline?
There are lots of reasons for a players decline in price.
He could’ve been the victim of a horrendous injury, which has ruled the player out for a long time.
It could even be a red card, which sees the player miss a few games.
Remember, IPD’s only last for 30 days, so if the player gets red carded he’s going to miss significant game time.
It’s sometimes also the fact that a player just hasn’t won dividends in a while. For example, Joshua Kimmich has been a frustrating hold due to the fact he’s been scoring really well, but finishing second place.
Football Index only pay out for the top defender, so you get nothing for finishing second.
Transfer rumours can also cause drops, as players make ‘negative’ transfers. This can be seen as a transfer to a Non-Match Day Competition, such as the Chinese Super League.
How is the IPO Price Calculated?
IPO prices are calculated and implemented by Football Index.
These are the entry prices of players entering the market.
A lot of work goes into this, as Football Index have to ensure the players aren’t priced too low, causing current holds to stagnate or drop in price.
Quite often, we find that new players enter the market at a Premium Price.
A lot of traders aren’t satisfied by this, but the more experienced traders appreciate that it’s a way to include a new player without negatively affecting the current market.
Who Controls the Spread on Football Index?
Football Index have a Trading Risk Team which control the spread on certain players.
If you’re new to Football Index, the spread is the difference between the Buy Price & the Sell Price.
The Risk Team set player spread on a unique, player-by-player basis.
If a player has transfer rumours, suffered a bad injury or something along those lines, he may see that his spread is significantly higher than another players.
The Risk Team do this to protect traders that currently hold that player, as it would give them less incentive to Instant Sell.
It doesn’t always work that way, as I found out recently with Memphis Depay’s season ending injury. I’ve got quite a few shares stuck in the sell queue.
Although I think when he’s back his price will recover, I’m aiming to sell up & make profit elsewhere, before returning my money into Depay.