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How is the Price of a Football Future Determined?

The Price of a particular Future/Share is determined by the number of other Futures/Shares in that Footballer in existence – i.e. the number of bets we have issued in that Footballer. There are no external factors such as the Buzz score that affect the price, it is purely driven by demand within the game. 

The relationship of price to volume of Futures/Shares is derived from our proprietary pricing algorithm, which states that if we issue another 100 Futures the price will go up to ‘x’.

The same is true if demand for Ronaldo drops, if say he breaks his leg and a lot of people want to sell. The price will then reduce incrementally as more sales are requested, with no buyers.

Sale requests are taken in strict chronological order – so if you’re the first to hear the news of Ronaldo’s accident and press ‘sell’ then yours will be the first to be ‘sold’. However, a lot of other people may also wish to sell, depressing the price that you ultimately receive.

You may set a reserve price below which you do not wish to sell, and you may cancel your sale at any time by clicking ‘cancel’ button in your portfolio.

In certain instances, we may act as ‘market makers’ to create liquidity in the market. This means that we will buy back Futures/Shares that are ‘for sale’ before there is a buyer for them, and hold them until such time as there is. In this instance we sell them on at exactly the price that we bought them with no spread – so we guarantee to never profit from sales by more than the 2% transaction fee charged.

 

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