All the fundamental questions answered in one easy read. Downloadable PDF Attached.
Do you want to profit from your football knowledge? Are you interested in joining the world’s first Football Stockmarket - Football Index.
Instead of outright bets on game outcomes, goals scored or even league winners, Football Index offers traders a platform to gamble through trading shares, also known as futures, in thousands of different footballers around the world.
Much like a stockmarket, you can buy shares, earning money through their value increasing with demand, and sell the shares at a higher price. You can also win dividends along the way, providing cash payouts for the duration in which you hold the shares.
Sound intriguing? We’re going to breakdown all you need to know about Football Index in 2020 to set you off on the right foot in your trading journey.
First things first, how do you earn money?
There are 2 methods to winning; Capital Appreciation and Dividends (4 different forms of cash payouts).
1. Capital Appreciation
This is the anchor in your trading strategy. It’s the concept of buy low, sell high. Traders can buy shares in players and resell them at a higher price if there is demand in the market for that player. A basic example, a trader could purchase one share in Marcus Rashford today for £7. In one month’s time, Rashford’s share value may have increased to £8 so you sell – and earn £1 profit for that one share. We’ll discuss factors that effect share value later.
There are 4 forms of Dividend that shares could payout.
a) Matchday Dividends (Performance Buzz)
Every eligible matchday that your player is involved in, he’ll register a score known as Performance Buzz (PB). This score is based on a Matrix comprising of key stats, such as goals, passes, assists, tackles, clean sheets etc. There are different elements of performance matrix for Forwards, Midfielders, Defenders and Goalkeepers. The performance matrix can be viewed here.
The Top Forward, Top Midfielder, Top Defender, Top GK and Star Player (highest overall score) will win dividends for that matchday. The table shows the matchday dividend payout.
b) Media Dividends (Media Buzz)
The second dividend you can win is a media dividend. Your player can win this based off of their performance in the papers. Football Index monitors 20 media outlets and screens articles against their points system, to give a Media Buzz score every day. A regularly talked about player will feature in the headlines, often in a positive or speculative light. The more positive the article, the greater the points scored. On a matchday, the player ranked top in the media wins £0.03 per share. On days where there are no matchdays - aka Media Days - the Top 3 players in media rankings take home £0.06, £0.03 and £0.01 respectively.
c) In-Play Dividends
For the first 30 days that you hold shares in a player, you are eligible for the following In-Play Dividends (IPDs). After 30 days, you are no longer eligible, though can buy more shares in the same player to reactivate IPDs for the new shares acquired.
d) Team of The Month (TOTM)
The final dividend is new to Summer 2020. TOTM offers consistently high PB scorers the opportunity to win dividends each month. It takes the sum of the Top 3 scores of every player over that month. For example, if Messi scored 250, 220, 200 and 180 over the month, his score would be the total of the best 3 – 670. The best GK, three best defenders, four best midfielders and three best forwards win, paying out the following dividends:
In the event of a tie, the younger player will win. All shares owned before the 21st of that month are eligible to win TOTM. There must be 5 total matchdays for TOTM dividends in any given month – meaning the conventional European off-season may not offer this form of dividend.
Eligibility of PB
Your player is eligible to register a PB score in certain competitions. It’s crucial to understand that some leagues and tournaments are not recognised for PB scoring, therefore would not be eligible for a Matchday Dividend, In-Play Dividend or contribute a score to their Team of the Month total.
The eligible competitions for Performance Buzz include Europe’s Top 5 domestic leagues and larger international competitions:
- Premier League
- Ligue 1
- La Liga
- Serie A
- Champions League
- Europa League
- FIFA World Cup
Qualification rounds often count in tournaments, though it’s always worth checking Football Index itself to identify which competitions are eligible.
The following competitions are not eligible for a PB score, so your shares would not win matchday dividends, in-play dividends or TOTM contributing scores:
- FA Cup
- League Cup
- Championship, League One, League Two
- Preseason Tournaments
- Liga Nos
- Scottish Premiership
- Copa America
- African Cup of Nations
- Asian Cup
Every trader must be aware of purchasing shares in players that feature primarily in these leagues, as they will register fewer PB scores than those who feature regularly in eligible competitions.
How does the Share Price increase?
Supply and Demand is the simple answer. If there are more traders that are buying from the market (buying at market value) than selling at the market for a given player, then the value is driven up. If more people are selling at the market than buying, the value decreases.
When you list shares on the market, you join the sell queue. This means you’re selling to traders who are buying at market price. When you sell the player at ‘Instant Sell’ you sell the shares to another trader who made a bid. There’s a distinct difference here.
What about bids?
You can bid on a player with the intention of acquiring shares below market value. Bidding on a player will not directly manipulate the players market value. Bidding on a player is offering to acquire shares from a trader who wishes to instant sell rather than join the sell queue. For those that want to cash-out on shares quickly, they can click ‘instant sell’ to guarantee the shares are taken off their hand for a price that is specified.
What is the Instant Sell Price?
The Instant Sell Price is the average price of the top 300 bids on that player. So, if the bids are low and there are not many traders buying at market price, then the instant sell price is often considerably lower than the market value. If the player is in high demand, traders will bid more for the shares to ensure they are the ‘next in line’ to win the bid. When another trader then presses ‘instant sell’ on that player, the highest bidder in the line will get their shares.
Why do some players have a wide difference between buy and sell?
This is called the spread. A wide spread indicates a lack of demand, lack of liquidity and lack of trading activity in general. As mentioned above, players in high demand will have a low spread. This means there will be a small difference between their market buy value and their instant sell. This is because more bidders will be competing against one another, hence traders will be willing to increase their bid price to ensure they are first in line when the next trader instant sells. A player in low demand will have very few bidders, perhaps even just one. Therefore, there will be little competition or driving force to outbid one another. Alternatively, traders simply believe the value of the player is far lower than the listed market value.
Why does a player have no Instant Sell?
This will hopefully not persist in coming months. But for the time being, a player can have no instant sell function. This is because there is open bid available on that player. Remember, to Instant Sell shares there must be another trader bidding on them.
How long do my shares last?
Three years. This is a crucial factor when considering a player’s value and return on investment. Your shares are a bet, the bet is over three years. After this period, the shares expire and you’d lose all money. It’s crucially important to be able to sell your players before this happens, as you’ll rarely recoup all of your investment through dividends alone. Football Index are yet to make it accessible to view the expiry date of bought shares, though have always insisted that the shares will expire after three years. They intend to implement this rule in the 20/21 season.
What dictates a players market value?
There are multiple reasons to buy shares in a given player, including Dividend Potential, Age, Club, League, Form, Nationality and Position.
Their dividend potential is the most obvious reason. Players in the high end of the market such as Trent Alexander Arnold, Neymar and Bruno Fernandes are regular dividend winners. They win PB, contend in TOTM, are Media attractions and would likely provide some In-Play Dividends during the first 30 days. Dividend pay-outs over the course of three years would likely contribute a significant ROI, though it’s rare in the top end of the market that this alone would suffice.
Age is therefore the next most important factor. Age is a double-edged sword. The older a player gets, the more they ‘fulfil potential’ and generally improve their performance. The peak years, like that of Neymar, are fantastic for dividend potential. But when traders start to believe that a full three-year investment could encounter capital depreciation (share values lowering as they age), the market value tends to dip. For example, despite Messi having his best season to date and winning double the PB of the nearest competitor on Football Index, his share value is 17th highest. This is most likely due to his age. Will Messi continue to improve? Will he retire within the next three years? There are plenty of risk factors to include in his share price despite his performances right now being exceptional. You are, after all, investing in the player’s future. Similarly, a teenager like Greenwood has not won PB dividends at all yet. However, traders anticipate a rise in PB, predict a media sensation and see he still has an entire career ahead. As such, it’s only likely that his value will go up, rather than down. Therefore his share price is high, as traders invest in his future.
Position is also an obvious factor. Goal and assists contribute to a high PB score, so a holding midfielder is rarely as expensive as a creative attacking midfielder of similar calibre. A goalkeeper can’t win as many PB dividends and is rarely a media attraction, therefore, Goalkeepers are valued lower than outfielders.
With all the basics covered, we hope you are intrigued by the platform and would like to join the community and start trading on Football Index.
Remember to always check the rules, read the regulations and understand the product as best as you can before depositing money. We highly recommend you read top to bottom before laying your first bet down. It is a gambling platform after all. Gamble Responsibly!
Here's a link to Football Index Academy, where you can learn more about the platform. Football Index Academy. Finally, here's a link to BeGambleAware should you have nay concerns over gambling activity - Gamble Awareness.