Buy and Sell gaps



  • Gaps appear to be widening lately. And large gaps on low priced players. I'm sure theres a reason. Pulisic a strange one 20p gap



  • @NewUser279259 yes but only if you instant sell.



  • @Stevo I'm probably being ignorant but why 20p on a £1.60 player and only 6p on another £1.60 player.



  • @NewUser279259 my understanding is it's a bigger spread on players that are likely to be panic sold to avoid a market crash.

    I suppose people seem to think pulisic is worth sacking off currently so FI see it as an easy opportunity to make some bigger dosh.



  • I think I read a theory it’s relative to the size of the sell Q. Which sort of makes sense.

    Pulisic has dropped 60p from a high about 3 weeks ago, and he isn’t attracting many buyers. I would guess that there is a chunk in the Q waiting to sell. While we can’t see this FI can and I would imagine their concern is if all those in the Q became IS in a short space of time it could become a chunky liability for them, so they adjust the spread to make IS even less attractive.



  • @Ringers Nice one I see where your coming from. Brill.



  • @NewUser279259 I’m not saying I’m right, it’s just a theory



  • @Ringers I'm sure thats the case, reason being that FI know how many players are in the market sell queue so they can work out what the price would be if all those in the queue decide to Instant sell.

    This is a great safeguard as its actually in FI's interest to allow all players to IS as they earn more commission on the spread but it also protects their own position as any shares sold via IS are bought by FI and they dont want to be left holding shares at a higher price than people want to pay therefore they increase the spread.

    Therefore avoid at all costs players with a high spread as its likely (unless that player goes and scores a hat trick in his next game) that the price will fall due to the numbers in the market sell queue.



  • Somebody did say yesterday that theyd noticed the cheap players who were the subject of all the very short term trading that weve all been suffering because of, had had their spreads increased. I cant say I've looked into it but if that's the case I'm glad to hear it and fair play to FI



  • Its also a bit of a worry that most of the players in the top 10 currently have a huge difference in the buy/IS price.

    If this theory is correct, then we could see prices continue to fall at the top end.



  • @Long-Haul-Col said in Buy and Sell gaps:

    Its also a bit of a worry that most of the players in the top 10 currently have a huge difference in the buy/IS price.

    If this theory is correct, then we could see prices continue to fall at the top end.

    It's always worth considering the spread as a percentage. The monetary amount for the big players is bigger but often the percentage compared to lower ones is more generous or at least on par.



  • @Alpilgrim Agreed but I have never seen spreads this big on so many players.

    There have always been players with bigger spreads than others but you knew why that was happening (injuries, being dropped etc). Currently I have no idea why the spreads are so big other than lots of shares being up for market sell.



  • @Long-Haul-Col so if you have a £1.50 player the stable spread is about 5p how much increase in that spread would alarm bells start ringing.



  • @NewUser279259 8ve really noticed the spread in the last few days. I have Gnabry and Ikone they both scored in the internationals both went up about 5p but sell price didnt move so a 5p gap became 10 on both players



  • @Long-Haul-Col

    I don't disagree that the spreads have increased. Looking at my port I'd say it's the case for about half of them. I imagine it's to quell volatility. The first few weeks of the season were ridiculous in that respect.



  • nothing like FI increasing spreads to 1 stagnate trading and 2 decrease the value at same time , not sure FI are employing people skilled enough to sort out the mess they are creating for themselves, they either want short term trading or they dont, even "mug"(for want of a better word) gamblers will get wise to it before too long



  • @NewUser279259 I am really not sure what the exact numbers would need to be but on a player valued at £1.50 but if the spread was more than 10p I would be weary.

    E.g . Alexis Sanchez, buy price £1.51, IS £1.39, should only be about 2% spread so why is the spread 7%?



  • I'm gonna trust FI has an automated calculation that dictates the spread, rather than a subjective assesment. Id assume the biggest thing that drives the spread is the number of instant sell shares that FI are yet to recycle to the market but other factors could be;

    • Total shares active.
    • Total shares in the sell que.
    • Number of owner's.
    • 24 hour buying activity.


  • @MickTurbo yes I’ve seen this mick



  • @Collymore10 I'm still not sure about these spreads. There are so many big ones now. Will frighten new players off surely. When you look down through the top 200 now it's worse than I've ever seen it.
    I would be happy for someone to say yes we had the same problem before. Dont panic.


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