Order Books??

  • Lots of talk on Twitter about them maybe being used by fi very soon. I did listen to the Q&A with Adam Cole and he mentioned they’re working on it. I don’t have any experience in trading but can anyone explain how they work.....

  • I hope they aren't too imminent... I'm sure they will be of benefit... Don't know enough about them... Scared of change! We've had too many changes lately.

    I get the theory... Essentially you can list prices you are willing to buy/sell for. Rather than adding to a queue set by a market sell rate.

    Don't know how it will affect how port values are displayed etc... If someone suddenly lists a £5 player for £1... Does that set the new buy price as £1? Or are there going to have to be new screens... One where you see the cheapest you can buy a player for...one with an average value of players...

    Will we still have instant sell... And how will instant sell price be calculated?

    Can see people constantly undercutting your sell price so ur stuck with a player for ages. I. E. I have, £6 share and list it for £5.80 thinking its a quick sell... Always going to be some arse hole stick one in at 5.79

  • @DavidMUFC1987 said in Order Books??:

    Lots of talk on Twitter about them maybe being used by fi very soon. I did listen to the Q&A with Adam Cole and he mentioned they’re working on it. I don’t have any experience in trading but can anyone explain how they work.....

    I still think it will be next summer at the earliest, maybe after the Euros are done. It is a lot of tech.

    BUT maybe they will launch it with the new website.

  • @DavidMUFC1987 So I'll try and keep it simple.
    Traders will be able to place buy orders which means, for example I could put an order to buy Pogba at say £6.30 (between his current buy and IS price) - to place that buy order I need to have the funds in my account.
    When you sell you can still either market sell (place a sell order) or IS to the highest buy order - it (should) narrow the spreads especially for the more popular players. I would guess FI will keep an IS price for as long as its needed but ultimately the IS price will become the highest price somone is willing to buy for.

  • @Vespasian32

    Summed it up nicely, just watched a few you tube videos and I thought the same. It would be a game changer for the majority of us. I’m hoping it’s not imminent, also it would be nice of fi to have some tutorial videos so we can grasp it rather than just throw it into the mix and upset everyone.

  • @janner73
    Thanks mate

  • @kristiang85
    I hope so 😂

  • @janner73 does it lock in that order funds? And could take ages for someone to sell at 6.30. Just feels like it could be really hard to buy and sell fluidly like you can now

  • @Vespasian32 People wont be able to continually undercut unless there are no buy orders at all. You wont be able to place a sell order lower than the price of the highest buy order. I know change scares people but this is what the index needs - in most cases the spreads will be significantly less especially at the top end.

  • @Vespasian32 Yes it will lock in those funds until either the buy order is successful or cancelled. Im pretty sure FI will do something to incentivise people keeping buy orders in place at least initially as it does need liquidity.

  • Could a group of people manipulate the market more with these then? Listing and selling collectively etc?

  • @janner73 yeh so if there are no buy orders... You can't put a sell order in? I'm thinking some shitty ipo like we've recently had... So you have a few people who buy on the release... Then want to sell but no one is buying salve sevilla... So even tho he's 35p you can't chuck out a sell price of say 20p to entice a chomp? Fine if IS is still there but as you say that would eventually be taken away

  • I do not know much about order books myself, but FIGUIDE was talking about a few times on his podcast so far and one thing that concerned me was, that people could potentially dump a player price to trigger order books to sell and therefore continue to downward the dumping. At the end they have the chance to buy in at a lower price, then they have held.

    At least I believe it was the FIGUIDE pod...

  • @Antierror this is what I'm meaning, I dont understand them either properly but would expect a group to be able to manipulate it more than at present by listing to market.

  • @Vespasian32 If there are no buy orders then yes you could put a sell order in at whatever price you want, you just wont be able to place a sell order lower than the highest buy order.
    A perfect example for me of how buy orders would have worked great for every one was Pogba yesterday. People were ISing at close to £6. I would have whacked buy orders in at £6.20 cos there's no way he was going that low - the sellers would have got better than the £6ish they got and I would have been very happy with my Pogbas at £6.20.

  • @Dan-w Yes and FI will need to monitor this - there are plenty of tricks with order books to make it seem like there is demand when there isn't or like a sell off when there isn't. This is also where traders will need understand player value better - and some of the lower end players will be more of a punt than they are today where for the potential rewards the risk does need to be a little higher in my opinion. Its too easy to speculate on every cheap player going with the comfort blanket of FI buying back.

  • @janner73
    Ah I see I’m understanding it better now through your comments. Might take a little while to grasp but sounds good to me. I suppose another example could be when a player gets injured etc.

  • @DavidMUFC1987 Yep another great example - I suspect drops could be a bit harsher on injuries initially. People will cancel buy orders on an injury and it will look like the price is dropping much faster than now until the market decides what a new fair price is and buy orders start appearing again.
    I understand why people are scared of them but ultimately they provide much better trading opportunities and significantly smaller spreads. I would suspect that in the long term spreads would be as small as a couple of pennies on the likes of Pogba.

  • @janner73 good explanations. I still feel like I'd sell and leave before it comes into place.. But then rejoin as if its a completely new platform with just a very small outlay till I understood it better... And more importantly understood the changes it had on market behaviour.

  • @Vespasian32 Understandable. In the long term it will make this a better platform but I fully expect that it may cause some short-term pain because change always does and it is a big change. I think market sentiment will be even more important than it is today - if you buy players that the market has no sentiment towards then it will be much harder to sell.
    You're a very smart trader and I'm 99% sure you will ending up making more with order books than you do today.

Log in to reply