Index Risk



  • Hi guys, not sure if this has been covered, but here me out. FI are going to Implement a three year hold on players. Once this happens this will start for every player held on FI with millions upon millions of futures. How are FI going to pay out millions of shares some at £20 per share also without crashing the market at the same time as prices are factored by the original investment?? Hope this makes sense



  • @Smilayo said in Index Risk:

    Hi guys, not sure if this has been covered, but here me out. FI are going to Implement a three year hold on players. Once this happens this will start for every player held on FI with millions upon millions of futures. How are FI going to pay out millions of shares some at £20 per share also without crashing the market at the same time as prices are factored by the original investment?? Hope this makes sense

    It's always been a 3 year hold, in fact didn't they make it 4 years, and pay out who ?? If you keep hold then your bet gets terminated, buy buy money.



  • @Smilayo No, it doesn't make sense.



  • are you telling us that nothing has changed as its always had a time limit ?



  • @Smilayo 3 year hold has always been in place. It's very rare a share gets to the 3 year hold in the first place, and when some shares do, they wouldn't all get there on the same day or week.



  • @Smilayo It's a valid point and I know what you mean.

    Especially for the biggest investors. Let's say a couple of big time investors hold 10, 000 Pogba's each, bought for £1.20 but now valued at 18.00.

    If their expiry period happened to be on the same day or thereabouts, FI are paying out a hefty sum in return for the futures.

    Presumably at the end of 3 years, the value of the player is added to your balance and the future expires? Obviously most will plan ahead and sell and rebuy before expiry but that's not the case for all and could be a risk worth addressing..



  • @Metropolis_山の中の市 at the end of 3 years your money goes bye byes unless you sell in advance



  • I think there's a valid point on a share split that all those holds that are split should restart with a 3 year bet from that date...

    Thats not to say 'everybody' will hold on to these new futures for exactly 3 years... in fact I'm sure most will cash out long before then and others might leave it 2 years and 274 days instead of the 3 years to the day?



  • @Metropolis_山の中の市 @Boing-Boing is correct. If you are still holding at the end of the 3 years your money just goes. There are less than 5 shares, yes 5 shares that are at risk of going when FI extended the hold to 4 years, and FI added a extra year two trader meets ago.

    I wouldn't worry about it. It's really rare anyone holds the same share for 3 years, plus any large investor will have a exit plan and sell slowly to the market in the time leading up the expiry of the shares. They would not IS on the last day and tank the price and have to pay the spread.



  • @Noirx4 What did Adam say the average time a share is held for? I can't remember. It's shockingly short.



  • @Misto Well said, but was the extension just for those that were expiring? I still believe shares I am buying now are 3 yr max.



  • @Weedster Correct. The extra year was just for shares that would have expired this year. Anything you are buying right now is 3 year.



  • I read somewhere that you get some form of warning / reminder when you approach the 3 year limit I'm not sure where from though



  • @Misto it was something like 48 hours or something - it shocked me how short it was.



  • @Smilayo said in Index Risk:

    Hi guys, not sure if this has been covered, but here me out. FI are going to Implement a three year hold on players. Once this happens this will start for every player held on FI with millions upon millions of futures. How are FI going to pay out millions of shares some at £20 per share also without crashing the market at the same time as prices are factored by the original investment?? Hope this makes sense

    are you referring to how are FI going to pay everyone out? if so it wont cost FI a penny

    say you bought Pogba at £10 and you sell for £20, you have made £10 but that £10 doesnt come from FI, its other traders money who have bought that player up the rise.

    the only risk to us as traders is if everyone sold the player on the same day then its a case of first out wins - would this happen, maybe but the chances are very rare (take Fabrice muamba as an example if you held him when he had a heart attack)

    As for the 3 year rule the average hold length is a matter of days never mind years and so much can change. I have been on here nearly 6 months and have sold everyone in my portfolio at least once and I presume I am not alone in this



  • @Misto 48 hours was stated at the last london trader meet which was pre G&A



  • @Smilayo they aren't implementing this. It has always been the case since day one. Secondly they have just hit the 3 year limit for some shares they extended those shares deadlines by 1 year and said there were maybe 10 shares affected



  • @Boing-Boing yes always had time limit nothing has changed



  • @Noirx4 ah was it 10 I said 5. Either way. I really hope they don't get all dumped at once /s



  • @Misto haha it was somewhere in the single / low double digits


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