Futures null after 3 years



  • I only joined the index a few weeks ago and I was looking in the FAQs and found this "Futures are valid for a period of 3 years from issue after which date they become null and void."

    So if this were to happen would you be refunded your investment at current market value or would you lose your investment (similar to if a player was relegated)?

    How long has the index been going for? Has anyone had to consider this rule? I realise as I've only just joined I am getting a bit ahead of myself but my first move in the market was to go for a long term hold on Neymar and i'll have to remember this rule if I still have him in a few years! Also might be important if you're investing in very young players (such as pulisic or diaz) for long term holds.



  • Good spot!

    So we need to keep track of when we purchased the future? I think FI needs to reconsider this rule.

    This is the section in question:
    Who Loses Money on Football INDEX?
    Unlike spread betting you can never lose more than your stake, and for you to lose all of your stake your Futures would have to be of no value in the market, and for you not to receive any Dividend payments on them.

    Futures are valid for a maximum of 3 years or for the lifetime of the Footballer on the 1st Team list. If your Footballer looks in danger of being relegated from the 1st Team your Futures will certainly be worth less, if not valueless, and you will lose part if not all of the value of your Futures.

    Traders look to avoid buying at the top of the market for a Footballer and having to sell at the bottom.



  • In theory, and if you're actually 'trading' on Football Index then over the 3 year lifetime of a future there should be enough rises and falls in that players value to warrant trading in and out of that position several times - injuries, form, off-season breaks, transfers etc etc. In doing so the 3 year lifetime of said future is reset and thus not a problem.

    I've been a heavy user of Football Index since October 2015 and it's not something that I even spend a second of thought over to be honest.

    Hope that helps to allay your worries.
    RC



  • @FootballIndexRC said in Futures null after 3 years:

    In theory, and if you're actually 'trading' on Football Index then over the 3 year lifetime of a future there should be enough rises and falls in that players value to warrant trading in and out of that position several times - injuries, form, off-season breaks, transfers etc etc. In doing so the 3 year lifetime of said future is reset and thus not a problem.

    I've been a heavy user of Football Index since October 2015 and it's not something that I even spend a second of thought over to be honest.

    Hope that helps to allay your worries.
    RC

    What about those players you get at a bargain though? I got Pogba at £2.99 last summer and can't see him dropping below that any time in the next 2 years, so there'd be no need to sell IMO.

    They really need to bin this element off, it has no replication in a normal stock exchange.



  • This post is deleted!


  • @FootballIndexRC

    I got Rashford in 2015, I wouldn't sell him in 3 years.

    With this rule I'd be inconvenienced to sell and buy him again. No reason for it IMO.



  • Completely agree that the 3 year maximum hold needs to be scrapped. With the promotion/relegation being scrapped as well it's completely feasible you'll invest in youngsters/lower league players and be willing to wait for them to climb leagues/nail on a starting spot before cashing in.

    Appreciate most players will be traded before the 3 years is up but some won't and there is no need for the rule. A good question for tomorrows Q&A.



  • They make money from commission on buying and selling so the rule is in there probably because the last thing they want is people holding onto futures for 10+ years.

    Its probably not a good idea to hold for 3 years anyway. Its likely that current buzz (media and any proficient PB) players will drop about May as people put money into transfer targets so you would be better off selling Pogba around then and buying back a bit cheaper. Its a self-fulfilling prophecy because next April people will be expecting a price drop in certain players (like this year) so they sell before the drop which ultimately triggers the drop.



  • @Mike78 Different for the World Cup this coming summer though, no?



  • Is there any way of telling the 'age' of a future you own?



  • @FantasyGaffa I don't think there is currently.



  • @Sagenode
    So you got Rashford in 2015, you watched him go to £5.52 (01/04/2017) and then drop £2 over the summer to a low of £3.55 (01/07/2017) and you saw, at no stage, an opportunity to sell and re-buy for additional profit in all of that. Okay - beats me.

    Personally sold him to market at £5.39, used the capital to profit during the transfer window and then re bought my Rashford futures again for the season ahead at an average cost of £4.09.

    ^ That's the trading element to well, a trading platform.



  • @FootballIndexRC Yes, his price shot up and went like a yoyo for a while. If I don't release my futures at the right time, I end up holding on. It's not the best way to trade I must admit. But this rule leaves me little choice toward the end of that 3 years.


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