Larger spreads



  • I've seen a lot of discontent recently regarding larger spreads in players which I can sort of understand. However I think what upsets traders more is pump/dump. Surely if larger spreads were to be put on players especially cheaper ones then that would eliminate pump/dump.

    So I recommend the following to stop pump/dump. All players under 50p have a spread of at least 5p-10p on them. The most common pump/dump I've seen is on the cheaper players, so by introducing this minimum spread this would in my view would stop this from happening so frequently.

    This would also give traders confidence in buying players at this price especially if they were on the rise as they know they weren't going to fall victim to a pump/dump scenario.



  • The thing is FI don't want to discourage selling as that's where they make their money.

    It's all about a balance, and I think its pretty good right now.

    You should have been here back in the pre-SS times when the pumping/dumping was far worse and more prevalent than it is now.



  • @Pagey74 said in Larger spreads:

    All players under 50p have a spread of at least 5p-10p on them.

    Simply one of the most ridiculous suggestions I've ever seen; FI generate commission income from traders buying & selling + a capital gain on any IS selling, so why would they want to take steps to reduce that trading? Many new traders seem to want to do short term trades - so why would FI want to drive them from the platform? Short term trading can form part of a longer term strategy too so why would they want to dissuade that?

    Spreads are largely due to the background AI reacting to price volatility - if you check those players that are relatively stable in price &/or less frequently traded their spread are far narrower. Whilst I agree pump/dump tactics are despicable I'm afraid deliberately increasing spreads is definitely not the solution.



  • Ethan Hamilton.

    Buy 39p Sell 28p (28 Per cent Spread)

    This idiot bought in at 45p. He has been in my sell queue for a,month now. Probably will still be in the Sell queue until 2020 at least.



  • @kristiang85 I agree with you,however FI are encouraging pump/dump to line their own pockets.



  • @Pagey74 said in Larger spreads:

    @kristiang85 I agree with you,however FI are encouraging pump/dump to line their own pockets.

    I don't think they are encouraging it, they do apparently suspend accounts that do it on a regular basis. And they do move spreads on suspected P/D activity - see the Kaylen Hinds fiasco earlier this year.



  • @Pagey74 Its a fine line between flipping and pump/dump. I'm pretty confident that where group pump and dumps have been proven FI have taken action - the Kaylen Hinds situation is a perfect example of this. From my perspective, the right way to handle this is that short-term trading has to exist for the platform to survive but group collaboration to pump and dump, where proven, should be dealt with. Deal with the offenders and don't ruin the platform by increasing spreads because of a minority.
    I wouldn't even contemplate buying a sub 50p player with a 10p spread. Not because I intend to pump and dump but because if something goes wrong with the trade or I want to exit quickly I don't want to face a 20 per cent margin to exit. Widening spreads in most cases will have the opposite effect and you will get less buyers and not more - at least that's how I see it.



  • @janner73 I'm not aware of the Hinds scenario as I wasn't on FI at the time. I see at least one on the risers list every day that looks like a pump/dump scenario tbh.



  • @NewUser159387 Very harsh but thanks!!!



  • @Pagey74 said in Larger spreads:

    @janner73 I'm not aware of the Hinds scenario as I wasn't on FI at the time. I see at least one on the risers list every day that looks like a pump/dump scenario tbh.

    Basically a group got together on WhatsApp and decided to pump and dump Hinds. FI caught wind of it and put a ridiculous spread on him, and they were stuck with a load of worthless shares they couldn't sell. It was quite funny.

    Edit: See here - https://forums.footballindex.co.uk/topic/10095/kaylen-hinds-get-out-now/4



  • @Pagey74 There probably is at least 1 every day. I just think I'm happier with them being dealt with on a case by case basis rather than a generic whack up the spreads across the board which for me will hurt trading. Hopefully we wont have to wait too long for order books which will make a big difference and should make pump and dumps a lot lot harder.



  • @janner73 What are order books?



  • @Pagey74 Effectively like the Betfair exchange - so will be able to place buy and sell orders. Whilst FI will certainly keep IS for a period of time I expect the spreads to be significantly wider to the IS price. Players with demand will have buy orders stacked up in between the IS price and buy price. It should automatically create a situation where wanted players have small spreads and random joe bloggs has a very wide spread as there are no buy orders and no demand.



  • @janner73 That makes more sense. Thanks.



  • Hey guys, I hold a few hundred of Renato Sanches and he currently has a 10p spread and costs 99p.
    I’m just wondering if anyone here reading this has any in the queue?
    Trying to gauge why the large spread



  • @kristiang85 I was lucky to be on him I held 221 at the time and earned about £75 very lucky



  • @KTBFFH said in Larger spreads:

    @kristiang85 I was lucky to be on him I held 221 at the time and earned about £75 very lucky

    Yeah, it does work out for you sometimes if you have a cheap gamble who didn't work out - you hope he become a P&D target at some point!


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