Buy vs Sell spread



  • Hi,
    haven't been using footballindex for the past year, I bought a bunch of players at the time (currently have 6 in my portfolio) and then pretty much never did anything with it.
    I logged back in today to get back in the game but when I saw the spread between buying and selling price of pretty much any player I got shocked, it is absolutely huge! It used to be pretty close in the past, but with this spread a wonder if this game is even beatable anymore long-term. I turned a profit on all players in my portfolio, but with a 20/25% spread I don't think is even worth the risk anymore. What happened in the past year? Am I missing something? Thanks for your help!



  • I agree, Im only new to FI, but the spreads are a bit disconcerting. I'm also trying to understand how the 'sell' price works (if this is off-topic let me know and I will open a separate topic).

    I bought 100 shares of player x @£1.00. His 'Buy' price is now £2.00, but his 'sell' price is £1.70. I'm not willing to sell at that price, but would sell at £1.90. So I have set a reserve price at £1.90 for 100 shares - yet the 'Buy' price still quotes £2.00??
    How does this help the market? What if there are buyers at £1.90 (my price) but they cannot see my offer?

    Any help would be appreciated, otherwise I will bail out altogether.



  • I have your same concerns, I see that the spread is smaller among very popular players (the most expensive), however as you move down the list it becomes a bit of a joke. Not sure, maybe there is some other way to earn £ with the players in the portfolio apart from buying and selling (maybe dividends, but haven't looked into how they work tbh)



  • @NewUser328729 What you're referring to is not currently implemented in FI that's the next part of the OB to come. The reserve price is just a limit that you're not prepared to sell below so once the "buy now" price drops below £1.90 your shares will automatically be removed from the sell queue, hope that helps.



  • The way I see it it's going to be a lot harder to make money from cap app



  • @MarkyMark Hi thank you.
    How does the 'buy now' price drop to, or below £1.90? I would have thought that my offer to sell @£1.90 (albeit only 100 shares) should have driven that price down as it is more favourable to buyers than £2.00?

    Also, could you explain 'OB'?

    Thanks for your help and patience, much appreciated.



  • @NewUser328729 said in Buy vs Sell spread:

    @MarkyMark Hi thank you.
    How does the 'buy now' price drop to, or below £1.90? I would have thought that my offer to sell @£1.90 (albeit only 100 shares) should have driven that price down as it is more favourable to buyers than £2.00?

    Also, could you explain 'OB'?

    Thanks for your help and patience, much appreciated.

    You have listed the player to sell to market and are in a queue.

    Every time someone buys a player from market they will pay the market price of 2 quid and buy from whoever is at the front of the queue. In the meantime the players market price will go up and down.

    Every time someone lists a player to sell to market the market price drops. Every time someone buys from market is goes up. You have set a reserve price of 1.90. What that means is if market price drops below 1.90 then your attempt to sell will be cancelled. Its to stop people joining the queue and waking up in the morning and finding out they have sold player for 1.50.

    OB stands for order books. Which will work little bit more like you thought. Kind of like betfair although details not available yet.

    It's a bit more complicated than it used to be but we are transitioning.



  • @NewUser373577

    A few points that haven’t been covered already,

    1. The “sell” price is the Instant Sell option, which is set by other users of the index placing bids for a player. If you are seeing very wide spreads it’s likely your players are not in demand at the moment. You will see spreads narrow when a player performs well, has a transfer rumour etc.

    2. Instant Sell is not the only option - if you want to exit a player you can list to sell at market price (“buy” price). You will join a queue and your shares will sell when someone else buys at market price and you are at the front of the queue. Again, the queue moves quicker for in demand player for obvious reasons.



  • Thanks for the info above. But I have to say I am not very comfortable with this if I understand correct. Player x could have a 'buy' price of £2.00 (because that is price set at the front of the que, correct?) but there may be no demand for this player at £2.00.
    There may be demand for this player at, say, £1.90, which is the price I wish to sell at.
    But because I am not in the front of the que, the transaction cannot go ahead. I am stuck in a que behind someone who wants to sell at £2.00 even if there are no buyers at that price.

    If I'm offering the most competitive price I should be at the front of the que for potential buyers. Even if I am only selling 1 share - the buy price at £2.00 should drop to £1.90 (for my 1 single share), if this matched, and there are no other shares for sell at £1.90 or less, the buy price should revert back to the most competitive price offer which, in this case would be £2.00.



  • @NewUser328729 correct, and that is exactly how I expect it will work when the matching engine is fully launched



  • ah ok, so it is something that is going to happen? Is there a timeframe for this?



  • @NewUser328729 stage 2 (the ability to set offers, ie naming your sell price as you have said above) is expected before the end of August, according to the latest market update from Adam Cole


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