Under cutting



  • Do you think it would be helpful for FI to show the value of the most recently matched trades on a player's individual page, to help those either placing bids or offers?

    I can see pros and cons, but have been trading more recently and have today seen some completely unnecessary under cutting on Zaha and I bet this happens all the time.

    In this case, shares were market selling at 79p, at which point I had 14 left. Suddenly, a 78p offer came in, then 76p and now 73p. People were buying at 79p, so there was no need to keep dropping offers but I suspect those listing just didn't know. Unfortunately, if the numbers are big enough, it can drop the players price, people lose interest and the demand dries up and people move to the next trade.

    Would showing matched trades help stop this or is it a terrible suggestion?



  • It would be far better to show last sale price, I don't know why they haven't done that. They could get rid of the Average offer price and put the last sale price instead. Average offers is most pointless metric on the system and has no relevance.



  • Under-cutting is definitely a problem since order books came in. The buy / sell price directly affects the bids and offers and allowing the buy / sell prices to be affected by so few bids/offers has encouraged the decline.

    The FI audience is gamblers who want in or out now, not to set a bid/offer and wait and I think this is a big part of it.

    I feel they need to do something different that helps to discourage the under-cutting and also the prices that people are bidding/selling for. As for what, though, that is the challenge!



  • Thanks for your thoughts. Obviously people can bid or offer what they want, but I do think one or two extra trading tools might help people with valuing players. That said, we have 5 levels of depth now and it is obvious that some people are bidding without looking at this, so you can have all the tools you want, they won't help if people don't use them.



  • @Mintyfresh said in Under cutting:

    Do you think it would be helpful for FI to show the value of the most recently matched trades on a player's individual page, to help those either placing bids or offers?

    Yes



  • @Zizou yea but it allows them to give you that fake "benchmark" portfolio value which apparently stops people from panicking


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