Order Books??



  • @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.



  • @janner73 sorry couple more questions...

    How will you see the value of your players... Will it be hectic big shifts up and down based on the lowest buy order at any given time? So one second its 6.50 the next it could be 6.20?

    And using your pogba example... I can see why that works for all parties... But if he's priced at 6.63...who is putting a buy order in for more than that? Would it be a patience game... Like only when absolutely no one is willing to sell? That scares me... Cos with pogba and neymar etc they are traded so frequently someone is always willing to sell. You can see now, even in a buyers market when a player is flying, people will be IS and market listing the whole time as people hit their cash out price at various intervals. I can't see a point with someone like pogba where absolutely no one is willing to sell for his current price.



  • @Vespasian32 First part I'm not exactly sure what FI will show. If it's like betfair then you would see a buy and sell price as you do now with buy price being the lowest sell order and the sell price being the highest buy order - but you should also be able to see the orders above and below that. It gets slightly more complicated because presumably there will be a buy price at the point new shares should be issued.
    In the Pogba example, if there are absolutely zero sell orders then the buy price, I assume, would be the next price at which new shares would be issued which would be something like £8.37.

    That's how I see order books starting -the buy price for every player being the next price at which new shares would be issued by FI and the sell price whatever FI are prepared to offer as an IS price and then the gaps in between get filled by buy and sell orders.



  • @janner73 thanks... At least someone has a handle on things 👍



  • @Vespasian32 I've probably got some things wrong but the core concept should be correct. I don't think Pogba would have dropped as low as he has with order books. Because I think people would have seen buy orders stacked up and had more confidence to hold.
    There will be people who get absolutely hammered by order books - they will punish poor trading more and reward good trading even more than today.



  • yeah you would never of got pogba at 6.20 with order books/short selling, at least your an optimist ;)



  • Thanks @janner73, helpful stuff



  • @shilly Of course I wouldn't have - I was just providing a theoretical example. There would have been buy orders going in above my £6.20.



  • @janner73

    Thanks @janner73, some really good info and nicely explained.


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