Order Books!



  • Order books will bring:

    • Greater transparency
    • Better liquidity
    • More competitive spreads
    • Several new trading strategies
    • Traditional, sports and other asset traders to the platform

    Another piece of the puzzle in Football Index becoming a multi billion £ market

    What do people think about Order Books? Are you concerned or excited? I'm certainly in the latter camp!



  • https://forums.footballindex.co.uk/topic/16669/announcement

    FIG get involved there! It's been on about order books all day mate



  • @ScouseSte Will do!



  • Fairly new to the index joined just before xmas..Don't understand how order books are going to work.Does that mean the end instant sell and you will have to place an order for shares rather than just being able to log on and buy them.Hopefully FI will give us some kind of guide to read so noobs can understand?????????



  • @NewUser490326 see the link to the thread posted 4 comments ago mate - full of useful information and lots of speculation! 😂


  • Banned

    I don't think it will bring more liquidity, I think it will bring less, especially at the top end



  • @MrWh1te said in Order Books!:

    I don't think it will bring more liquidity, I think it will bring less, especially at the top end

    More opportunity to buy and sell between spreads isnt going to cause less liquidity.



  • @Splurger_Dan yes it will bring a lot more liquidity at the top but at the cost of stunting overall growth


  • Banned

    @Splurger_Dan
    The spreads will be non existent at the top



  • @MrWh1te i think he means the spread between market value and what you can sell for as in the instant sell value for current holders. The higher the demand the shorter the sell queue so the tighter the spread will get between upper market price and the sell price which will promote higher trading activity

    High demand = short list of sell orders and shorter spread
    🔵➡️IS⬅️⬅️⬅️⬅️⬅️🔴

    Low demand= long list of sell orders and bigger spread
    🔵➡️➡️➡️➡️➡️IS⬅️🔴


  • Banned

    @Black-wolf
    Surely whatever way they do it IS won't be available if there are shares in the buy queue and the top price won't be available if there are shares in the sell queue so that is immaterial. All that will matter will be the difference between buy/sell in the order book and tha will be no gap and no liquidity



  • @Black-wolf said in Order Books!:

    @MrWh1te i think he means the spread between market value and what you can sell for as in the instant sell value for current holders. The higher the demand the shorter the sell queue so the tighter the spread will get between upper market price and the sell price which will promote higher trading activity

    High demand = short list of sell orders and shorter spread
    🔵➡️IS⬅️⬅️⬅️⬅️⬅️🔴

    Low demand= long list of sell orders and bigger spread
    🔵➡️➡️➡️➡️➡️IS⬅️🔴

    @MrWh1te Yes what @Black-wolf said! It's obvious you two have a much better understanding of order books than I do. Basically what I'm thinking from a simplistic view point is that the new ability to sell shares more easily due to the option to sell between market price and IS for any level of player is going to create liquidity. Yes the spreads for the top in demand players will perhaps be non existent but you are more able to buy in to them if you want as you were able to sell your cheaper/less in demand shares alot quicker than is possible now.
    So what I'm saying is how can being able to buy and sell shares more easily and quicker cause less liquidity in the market?



  • @MrWh1te i call it IS but its the best offered buy order which will be the same in essence as we see see IS now


  • Banned

    Ok, so I did a quick Google because what I am saying seems simple enough and I was getting frustrated you lot can't see it and it turns out I am misusing the terminology 'liquidity'

    There will be a lot of liquidity (the ability to turn shares into cash).
    This will = less opportunity to make money as every penny is squeezed, especially at the top end.

    More liquidity = less trading opportunity.

    Does that make more sense?

    You need a balance. Enough ppl trading that you can get in and out, but not enough people that the margins get squeezed together.
    At the top end there will be too many people and at the bottom end there won't be enough.
    I hope that clarifies?



  • @MrWh1te said in Order Books!:

    @Black-wolf
    Surely whatever way they do it IS won't be available if there are shares in the buy queue and the top price won't be available if there are shares in the sell queue so that is immaterial. All that will matter will be the difference between buy/sell in the order book and tha will be no gap and no liquidity

    And technically yes the difference will be between best buy and sell but the number of shares listed for sale will also affect the upper value in such a way some sell orders will move out of scope but by foing it this way they avoid market manipulation by people buying cheap unheard of players then offering them for sale at a huge mark up. The upper limit or market value has to be set by FI to prevent manipulation and introduce new shares at times of high demand and same goes the opposite way when selling with no demand they can reduce shares in circulation



  • @MrWh1te said in Order Books!:

    Ok, so I did a quick Google because what I am saying seems simple enough and I was getting frustrated you lot can't see it and it turns out I am misusing the terminology 'liquidity'

    There will be a lot of liquidity (the ability to turn shares into cash).
    This will = less opportunity to make money as every penny is squeezed, especially at the top end.

    More liquidity = less trading opportunity.

    Does that make more sense?

    You need a balance. Enough ppl trading that you can get in and out, but not enough people that the margins get squeezed together.
    At the top end there will be too many people and at the bottom end there won't be enough.
    I hope that clarifies?

    If there’s loads of people going into premium players like you say then their price goes up - you make money through CA.

    I’m not sure what point you’re trying to get across? How will a tighter spread mean you make less money?



  • @MrWh1te said in Order Books!:

    Ok, so I did a quick Google because what I am saying seems simple enough and I was getting frustrated you lot can't see it and it turns out I am misusing the terminology 'liquidity'

    There will be a lot of liquidity (the ability to turn shares into cash).
    This will = less opportunity to make money as every penny is squeezed, especially at the top end.

    More liquidity = less trading opportunity.

    Does that make more sense?

    You need a balance. Enough ppl trading that you can get in and out, but not enough people that the margins get squeezed together.
    At the top end there will be too many people and at the bottom end there won't be enough.
    I hope that clarifies?

    @MrWh1te yes see what you mean now. It was because you were mis using the word liquidity that I didnt agree.
    In regards to the view of there being less opportunity to make money; thats debatable and not how I see it as it will encourage more money to the platform combined with the natural growth of what is still a very young market. Only time will tell on this anyway.


  • Banned

    @ZakStag
    The prices won't keep going up and up. They will hit a ceiling where they are no longer viable.
    I think we all agree that market saturation point is a big problem for FI and at that point it will be tough to make money and just a gamble.
    This could bring it about a lot quicker.



  • @MrWh1te the way i see it is that we will reach the ceiling slower as people will be more willing to sell more often even in times of high demand and that will slow the rate that FI are directly selling shares to traders. That means FI wont have to increase dividends as often and therefor will prolong the lifespan of FI.


  • Banned

    @Black-wolf I agree.
    But less raises also = less profit.


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