Over £1.50 profit per share sold in Ronaldo is outrageous, sooner this index gets with the show and has a 1% or less margin the better.
This will definitely put off newcomers arriving to the site.
Are there any plans to rectify this as it really is not fair to traders?
Hmm I do find the crazy spreads frustrating, but to play devil’s advocate, FI aren’t obliged to buy futures back off you. The price they offer is surely upto them and should take into account their liabilities, the risk of triggering a crash, and their need to make some money to pay out on dividends.
perhaps some sort of 'risk factor'' bar when buying a future with a large spread should be put in place??? a lot of newbies wouldn't know that the spread of some of these players is so high that as soon as they purchase they are quite a bit down??? Maybe a fixed percentage would make sense but if that cannot be done something in place to say that 'spreads can vary' so people know what they are getting themselves in for?
@dannypea Stickies for beginners?
Being able to sell out at nearly £9/future might seem an absolute bargain in a few months time, I have been arguing CR7 is the most riskiest hold on the index for some time, well before the latest set of unsavoury allegations came to light. He may well be sub £5 this time next year & with hindsight now might prove be a good time to sell. I do however think order books will be a good move & hopefully eradicate such anomalous prices.
I don't think Ronaldo was a risky bet for this year. He's in the media constantly and he will still take 7 or 8 shots a game and score a lot of goals. Even with his age, Juve are far better than the rest of their league so they can let him do his stuff.
However, the rape story has killed the chances of media buzz and I managed to sell via the queue the after it was reported for the 2nd day. As with all shares, the momentum can snowball in one way or the other. It has taken a bit of time for him to drop down to £10.50, but I think the main reason for this is the large spread.
So, whilst it can be frustrating to lose so much on the sell, it has actually protected a large number of people from massive losses.
A conclusion to the story might inspire a rapid rise back to the top, but at 33 then maybe it's a bit too late anyway.
His sponsors are already distancing themselves, legal action in the USA usually runs for years, how long will the stress take to affect his performances? (already been "dropped" by Portugal), if he fails to perform on the field will the fans get on his back? Add in his age, new teammates, country, lifestyle, league, media scrutiny, language I could go on listing the challenges he still faces but you get the idea.
Massive risks + limited upside = HUGE SELL SIGNALS IMO.
Is there a formula that FI apply in order to arrive at a spread e.g is it somehow linked to the amount of traders currently waiting in the queue to sell him? Or do they make a executive decision on what % to apply?
We believe it's an automated algorithm to help stabilize the market.