Order Book Query



  • So I've got a hypothetical scenario I'd like to throw at other traders....

    Say I hold Jadon Sancho with a current sale price of £12.50 (which sadly I don't), I've made some profit and I'm looking to offload him.
    As he's a popular player there's gonna be plenty of other traders who are currently listing him and are prepared to sell for less than the £12.50 sell price.. so am I to assume that to actually sell a player using order books I'm gonna need to list them at a discount from their listed sale price?

    If that's the case every trade is less profitable in reality?



  • Depends on the method implemented. Im hoping the are used to fill the space between buy and sell only. So yes an order book still wont be as profitable as market selling but it will improve liquidity as the spreads will be more acceptable to more traders.

    I actually think now will be the perfect time to introduce them as it will mean FI can leave the spreads as they are and let traders reduce them themselves. FI would of had to wid
    Den the spreads for order books anyway so doing it now means half their implementation is already done



  • @Wiillaah said in Order Book Query:

    's a popular player there's gonna be plenty of other traders who are currently listing him and are prepared to sell for less than the £12.50 sell price.. so am I to assume that to actually sell a player using order books I'm gonna need to list them at a discount from their listed s

    No for example if you have Purchased 100 shares @ £12.50- 2 months later

    You put a sell order for 250pcs £13.00 and someone will sell their 50 shares for £12.98 you would be 2nd in the sale que (in lamens terms)....so Jadon Sancho value would be £12.98 until someone purchased those 50 shares- then his price will be £13......if this makes any sense.

    this is how normal order books work- im not sure if FI will do the same thing or completely change it up.



  • @pompeyjosh1990

    So the players actual value will be whatever the highest listed selling price is?



  • @Wiillaah No lowest....technically.



  • @Wiillaah yes with that style of order book that will be the case sometimes the also value an asset as the average between buy and sell but with theses methods i find it hard to understand how FI will sell new shares in to the market as this type of order book is purely designed for trades between traders and can make prices incredibly volatile. Footstock uses this method

    For FI i think the will have to only allow orders between spreads and the upper buy price will remain the option to buy new shares from FI, the lower to sell back to FI and everything inbetween will be movement of share between traders. This way growth is still steady and FI still have control to prevent crashes. I hope its this method and that shares in circulation are what drive price.



  • @Wiillaah

    What you're disregarding is the current demand, which has been higher than supply for the last couple of months, which is why the price has risen so spectacularly. To build order books both buyers & sellers can list "sell/buy orders" at any price but for highly liquid players (high daily trading volumes) like Sancho the equilibrium market price would be established almost immediately (this might take longer in less liquid or rarely traded players) which creates a sweet spot where supply & demand are in balance. This can then rise or fall depending on whether more buyers or sellers join the book but business will be transacted at the prevailing market price. Whenever there are willing buyers you should be able to get out without the need to discount at all but even a 1p discount would jump you to the front of the queue, should speed of sale be important. A further bonus should be that you can see the depth of the market, effectively length of the queue, to see how much buy/sell volume exists at any specific price level, obviously dependent upon exactly the type of order book FI choose to implement as this is yet to be confirmed afaiui.


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