Spreads - Return to normal?

  • What's everyone's views on returning spreads to normal?

    I think the past week or so has shown that people have no intention of running away from Football Index, with money seemingly being pumped in constantly. Does it therefore make sense for FI to reduce the spreads back to normal and promote trading? This would also allow people to move their money into the media players, which is only really fair as that's the only way to win any dividends for the foreseeable future... It would also increase FI's income as people would definitely use the instant sell function.

    It's probably quite risky to do, but now that everyone knows the situation with football not returning for over a month, things could go back to normal?

  • @Johar I think it would cause a big crash at this moment in time, better off adjusting the spreads slowly in movement with things returning back to normal.

    I can't see them wanting people to take money out of the platform (which would inevitably happen) as well as have people jump on strong media holds to in turn have to payout even more on dividends, the amount of trading wouldnt compare to the amount of money withdrawal & dividends being paid out in my opinion.

  • @Heinstein

    Yeah, potentially it would. I can't make up my mind whether I think they should or shouldn't do it...

    I guess it's impossible to know how many people would take out money. I'm not so sure it would cause a big crash though. Obviously people would move money into the media players, but surely the income FI would get through the spreads (as I'm not sure many people would buy the PB holds atm so instant sell the only real way to sell your players) and the money from 'new' shares would cover the dividends they'd have to pay out?

  • I dont think they will change the spreads until the return of football has a confirmed date. If theres no football for 3-4months a lot of people would take their money out and it would be understandable in this financial climate.

  • @Johar I see what you're saying, however I'm not confident those instant selling the PB players would then jump on the MB players (some would of course, but not the majority) I feel they'd most likely be instant selling to withdraw it which is understandable, but also wouldn't be entirely great for FI considering these people would be instant selling with relatively decent spreads.

    I think if football is off for the next 3-4 months which is looking likely, and potentially even longer, the spreads should remain as they are - the platform seems to be doing pretty great at the minute considering the circumstances so no need to drastically change it just yet.

  • I'm of the view the spreads are here till the introduction of order books.

  • They should remain until football returns.

Log in to reply