Calling on FI to scrap the 3 year hold rule



  • @administrators

    For FI to work as a long term investment and trading market place the '3 year hold' needs to be scrapped.

    For example, Marcus Rashford bursts on the scene 18 months ago, he's promoted from squad and bought at a low price. I don't want to sell him at 3 years (or before). I want to sell in 5 years after he's fired Man Utd to multiple titles, made a consistent impact for England and Real Madrid are sniffing.

    The 3 year hold offers nothing to a trader but allows FI to make money for nothing.



  • Completely agree. Know I'm only a new member, but have been sports trading for a while. Can't see any way how this rule helps us traders.



  • @Wish I think i know why they have implemented this rule: They want to avoid that everyone holds there players for more than 3 years, and does not sell and / or buy any player. I can fully understand that FI implemented this rule. Because its a company and so they have to earn money to cover their costs. And they only earn money if someone sell and buy players (because of comission). But i have another proposal for FI: They could implement a holding fee (of for example 0,5 % p.a.) for holding players more than 3 years.



  • @NewUser38991

    I understand your point that FI cannot be in a position where every trader just has long term holds and therefore FI are making no money, however, as you suggest, something needs to be done.

    It's ridiculous to have a platform where it's not possible to have these long term holds - it would be like an investor buying Apple shares when they were a start-up but being forced to offload before the big products took off; it just doesn't work for a trader.

    The other angle is that even with long term holds, there would still be loads of short term trades taking place and, when the long holds are eventually cashed in, FI profit there at a higher sale price. I suspect the majority of traders would have a combination portfolio given the choice i.e. quick fire price spikes, long term holds and regular buzz winners.

    Not against your % idea for going over 3 years but do think the option needs to be extended.



  • @ACBlue I've just read that article by https://www.leaprate.com/forex/platforms/trading-sports-stars-mt4-football-index-ceo-adam-cole/

    The below is the reason they can not scrap that rule. Else we will be paying capital gains.

    "Gambling Commission, which means that all profits are exempt from Capital Gains, and we have created a market by using what we call a ‘fixed odds bet derivative.’

    The traded instrument is actually a ‘fixed odds bet’ on the ‘future performance’ of a player, which expires after three years. Traders may ‘cash out early’ (sell) at any time during that period at the published price."



  • @Sagenode said in Calling on FI to scrap the 3 year hold rule:

    @ACBlue I've just read that article by https://www.leaprate.com/forex/platforms/trading-sports-stars-mt4-football-index-ceo-adam-cole/

    The below is the reason they can not scrap that rule. Else we will be paying capital gains.

    "Gambling Commission, which means that all profits are exempt from Capital Gains, and we have created a market by using what we call a ‘fixed odds bet derivative.’

    The traded instrument is actually a ‘fixed odds bet’ on the ‘future performance’ of a player, which expires after three years. Traders may ‘cash out early’ (sell) at any time during that period at the published price."


    They could easily set it to 10 years ...

    Its actually a bit naughty if this is the reason. If the bet is for 3 years then when you sell a future then you should be selling the 3 year contract and the buyer only gets the remainder of the 3 years and not have it reset.

    The reason is FI make their money from commission, its not in their interest to drop it.

    You just need to work around it. There are predictable trends at the end of the season, international breaks and so on so generally if you are holding for 3 years you are doing it wrong.



  • +1 for this



  • @mike778 said in Calling on FI to scrap the 3 year hold rule:

    They could easily set it to 10 years ...

    Not sure what the gambling commission's requirements are in terms of distinguishing between a bet and a taxable trade. I'm only reading between the lines here.

    Its actually a bit naughty if this is the reason. If the bet is for 3 years then when you sell a future then you should be selling the 3 year contract and the buyer only gets the remainder of the 3 years and not have it reset.

    I don't think term length can be attached to the sell. Else you would have a two tier system, since a buyer may buy without anyone selling to market.

    so generally if you are holding for 3 years you are doing it wrong.

    Agreed.



  • Is there anywhere that tells you how long you've held a future for?



  • @Denny nope. Although it has been requested feature. Since its a rule it should be available, but FI hasn't yet commented on this.



  • @Sagenode I can imagine there'd be a lot of people who bought futures at the very start and just let them run and maybe forgotten about them.

    On another note, I saw a message that FI was two years old recently. Pretty sure I joined up more than two years ago...



  • @Denny

    You can look at your account and see your 1st buy Danny?



  • Ah yes, 20th November 15 when I made my first deposit. Bought Deli Alli for £1.63. That's about 40p in new money! Harry Kane £2.82 which is a purchase price of 70p now!



  • @Denny Cheers


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