Narrowing the bid zone



  • Confirmed they are narrowing the bid zone from 60%...but this was always the plan if you watch FIGS vid on the footballindex matching engine,

    https://www.youtube.com/watch?v=bmAm-fI4WH4

    thoughts...



  • Rather than narrowing the bid zone I’d remove it completely when sell orders / full OB’s are introduced. Let the market function naturally where prices are set by supply and demand.



  • @MikeWagner
    well they make money from volatility but right now the spread has to be closed from the bottom up..imo
    add in a bit of fomo throughout the market and let sell orders begin


  • Banned

    @MikeWagner
    No, no, no. no and no again.



  • Surely narrowing the bid zone will do nothing for trading?



  • @MrWh1te said in Narrowing the bid zone:

    @MikeWagner
    No, no, no. no and no again.

    Care to elaborate?



  • @Tom7471 said in Narrowing the bid zone:

    Surely narrowing the bid zone will do nothing for trading?

    Exactly - doing it in isolation will further reduce liquidity. If a player has no IS at 60% yield then narrowing the bid zone won’t force traders to purchase.

    The bid zone has zero bearing on trading. The issue is the one sided matching engine which causes a gap between demand and supply.



  • well whatever the cause our opinions arnt going to be enough,

    im sure Nasdaq with 50yrs of experience are going to be worth their weight,


  • Banned

    @MikeWagner
    Yes.

    People are getting screwed at 60%. The only people selling are the ones that are desperate.
    Remove it and it will be worse. And if people feel screwed, they quit.
    The more people we lose, the more our shares drop in price.

    Let's not forget, go back to pre-covid and this forum (and other platforms) were full of people taking the piss out of other people for using IS. now you want to make the spreads even bigger.

    That is only greed to screw others over further.


  • Banned

    @MikeWagner

    I dont think this is true either.

    Narrowing the bid zone will (hopefully) force more people to make more realistic bids. This will in turn let people out of some of their bets. This will get money moving around the market.

    It doesn't have to be on masses of players, just a few getting money moving and everything changes.



  • @MrWh1te I agree with your sentiment and obviously the best thing for sellers is to narrow the zone however I think for anyone who has mad a genuinely bad trade it is going to make it even harder to get out. Take Ighalo for an example if you purchased him for anywhere near £2 I think its fair to say you've over paid. At the moment you can purchase him for 60% of his current value which is 85p or so, I've picked up a few for that price as I think he is worty a (very) little punt and he will have some kind of spike between now and the end of his loan. I would not have done this if I had to offer say 75% of his current price. So my point is it better for someone who has over paid to cash out on a bid of 85p or to have no offer at all in the new world of tighter spreads as people will not take a punt?

    Maybe this is where the martket makers step in and they will offer an out for players at tighter spreads which will benefit everyone. This also highlights my main issue with the current and future setup for FI, all capital appreciation is against other users and someone is going to get stuck with a shit hold they can't sell, at least with IS you could dump the rubbish on FI. Right now we are just screwing each other.



  • @MrWh1te the biggest problem is what most of the players are worth in this market. I don't think narrowing the bid zone changes that. I wouldn't even want to value what the top 5 players are worth now but it wouldn't be in the new bid zone that's for sure.

    Also some of my lower holds you can bid below 60%



  • @Tom7471 agree completely.

    They are priced for a dividend increase that never fully materialised.

    God knows why someone would pay £13.75 for Sancho based on the fact he's coming to Manchester United when in all likelihood he isn't.

    He price is purely based on a transfer saga because he certainly doesn't win PB like a young Messi would.



  • @Ericali some of the value on the lower end is incredible. The only trouble I'm having at the moment is to how best distribute the money, not had that problem for 18 months.



  • @Tom7471 goalkeepers are (rightly) flavour of the month at the minute, but when traders have had their fill & they reach their saturation point, the £1-£3, £1-£4 price ranges will be next to benefit.



  • @MrWh1te said in Narrowing the bid zone:

    @MikeWagner
    Yes.

    People are getting screwed at 60%. The only people selling are the ones that are desperate.
    Remove it and it will be worse. And if people feel screwed, they quit.
    The more people we lose, the more our shares drop in price.

    Let's not forget, go back to pre-covid and this forum (and other platforms) were full of people taking the piss out of other people for using IS. now you want to make the spreads even bigger.

    That is only greed to screw others over further.

    I’m not suggesting it’s removed now while we only have one sided order books, but rather once sell orders are introduced or upon full NASDAQ integration. At this point sellers will have the ability to counter the bids from buyers which they feel are taking the piss with something more reasonable. Eventually prices will organically settle somewhere between current ME and IS, which will reflect how the market values each player.

    On a platform where we have fully functioning order books, the bid zone shouldn’t be required.

    I have a lot of sympathy for anyone who overstretched themselves and is now in financial difficulties because of the lack of liquidity but we’re very close to some transformative changes which should solve this.



  • @MrWh1te said in Narrowing the bid zone:

    @MikeWagner

    I dont think this is true either.

    Narrowing the bid zone will (hopefully) force more people to make more realistic bids. This will in turn let people out of some of their bets. This will get money moving around the market.

    It doesn't have to be on masses of players, just a few getting money moving and everything changes.

    I’m not sure this would be the case. There’s a couple of players I’m picking up at a 40% discount, not because I’m trying to be cheeky, but because I believe it reflects fair value. If the bid zone is tightened beyond this I’ll just not buy. I’m not going to be forced to buy a player above what I think he’s worth. If players aren’t moving at a higher spread then I don’t think lowering this helps. I do get your point though and maybe this helps on certain players but I’d imagine there will be other factors that need to fall in their favour too - transfer links, good performance etc.

    Anyway, hopefully it’ll be irrelevant in 2 months so best thing to do is sit tight.



  • Looks like the bid zone has narrowed a bit on a lot of players, the lowest value for placing a bid is higher than it was this morning.


  • Banned

    @Wynnston
    Yup exactly.

    That is what FI is now. This is what order books mean. It is player v player with FI just taking their cut in commission. This is the future.


  • Banned

    @MikeWagner
    Yeah lets hope it just sorts it out.

    I have managed to sell half my port and withdraw last night, so am on zero net deposit, so feeling better about things.

    Just gotta get the rest out :p


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