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1 hour until lift off...
As I’ve said before, this is good for the platform but might not mean we all see huge portfolio growth. I thought it might be useful at this point to do a little reminder thread on what affects prices on FI, especially for anyone new who may be unsure.
As I’ve said before, this is good for the platform but might not mean we all see huge portfolio growth. I thought it might be useful at this point to do a little reminder thread on what affects prices on FI, especially for anyone new who may be unsure.
Downward pressure on prices comes from people listing players to market (clicking the market sell button). Somewhere between 600 and 900 players listed equals a drop of 1p. Hence we saw drops when the football stopped as people listed their holds to try to get their money out.
Prices go up when traders buy from FI. This happens when the demand on a player is so high that there are more buyers than sellers. It means that FI have to effectively mint new shares for the market.
Somewhere between 600-900 shares bought from FI equals a price rise of 1p.
Somewhere between 600-900 shares bought from FI equals a price rise of 1p.
All market buys follow the same 1p rise per so many shares bought mechanism but peer to peer transactions do not impact on price in the same way as buying directly from FI because the price drop (caused by the initial listing) is cancelled out by the new trader buying.
So if I’ve listed a player to market and another trader buys from me, this has a net zero effect.
The same will apply to any transactions through the new Matching Engine - the supply and demand will cancel each other out.
The same will apply to any transactions through the new Matching Engine - the supply and demand will cancel each other out.
One last thing - because listing causes prices to drop, unlisting has the opposite effect.
This is the reason that most of us saw some healthy growth last night - traders had unlisted their players in preparation for this morning.
This is the reason that most of us saw some healthy growth last night - traders had unlisted their players in preparation for this morning.
So it’s not about how many shares are in circulation, it’s about whether the pressure on the price is mainly downwards (with listing) or upwards (with buys).
In fact, from 10am today, there can only ever be more shares added to the market as we can’t sell back to FI anymore.
In fact, from 10am today, there can only ever be more shares added to the market as we can’t sell back to FI anymore.
Anyway I hope that’s useful as a summary.
And if I’ve got anything wrong, feel free to correct me of course!
And if I’ve got anything wrong, feel free to correct me of course!
I should also clarify that by ‘price’ I mean the market buy price (which links to our all time profit figure).
Obviously the instant sell price is now going to be driven by what traders are prepared to sell for/buy for (perhaps a more realistic way to value our portfolios?)
Obviously the instant sell price is now going to be driven by what traders are prepared to sell for/buy for (perhaps a more realistic way to value our portfolios?)
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