Hypothetical situation



  • Hi guys just an odd one here! I'm wondering your thoughts are on what would happen if somebody in the early kickoff on a Saturday (say Salah) scored 4-5 goals before 2PM, pretty much guaranteeing dividends and star player with plenty of time for people to pile on as much money as possible. Could this possibly crash the index??

    Cheers!



  • You have to have got the futures by 2pm on the Friday



  • Ahh cheers, stupid question then haha!



  • @NewUser86649 The above is not true, you don't need the futures by 2 p.m. on the Friday and it does happen that people buy a lot of a player who's performed well in an early kick off before the deadline. I doubt it would ever be enough to crash the index but it's an interesting question!



  • @NewUser86649 star player is worth 18p a share but if loads of people piled in that players price would increase by much more than that so the first buyers / people who already own him would sell.



  • The first 1600 people would earn 16p star player so in thiory it would cost about £256 pounds has the additional shares would drive up the price of salah ontop of this it cost FI nothing has they has to be a winner anyway the only down side is the domino effect that maybe less strikers would be invested in that day



  • It's not a bad idea in theory for a small gain, but you risk that dividend being wiped out when the price drops if you don't buy and sell at the right time (not to mention the spread/commission costs). It might work better with the top players as they'll consistently win dividends anyway so you can always hold if necessary.

    It is an interesting question like the guy above said! Personally I think if you're after a short term/small gain strategy, it's better to take a punt on someone before the match, hope they have a blinder and then sell up when the price jumps.



  • It wouldn't crash the index.

    In the short-term, Football Index would be having a massive cash-flow injection (due to people buying Salah - for every 18p they are paying out that day, they will be getting £4.50 +) so it wouldn't cause any short-term problems. Long-term, if everyone piled into Salah they would be left with a massively over-priced Salah which people would have to sell so FI take the commission. So they would be fine with this long-term. Not only that but people would probably have to sell players (so commission) to pay for the Salah futures.

    Really this would actually be probably very good for FI - having money move around is exactly what they want and one of the reason for the 2pm deadline instead of midnight. It would certainly be much better than someone like Naymar winning.

    In terms of a legitimate strategy - its fine providing you get in close to the price Salah started the day at. If you buy at a premium then you are going to lose money.



  • Observation more than a response to the question... Alex Sandro put in a GWG and clean sheet for Juve today so was on for top defender all day. He's risen a bit but not much given the likelihood of a return.


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