Below is an easy to find, easy to access, FAQ taken from the page which Football Index published about Matching Engines.
The FAQ is hidden away in a pop up link right at the bottom so we’ve re-published it below so it’s easier for you find and share with others.
We’ve also added our own bits of information which other members have shared by learning how it works. See the IndexGain comments under each Football Index FAQ.
Matching Engines FAQ
Why are Football Index introducing the Matching Engine?
The Matching Engine is a stepping stone towards NASDAQ-powered Order Books. It will provide Traders more flexibility on how they would like to buy Shares – via Buy Now or Bids. The Matching Engine will be updating the Instant Sell option in order to provide better spreads and liquidity.
IndexGain – you can read more about Orders Books and how they work in this post.
Do I have to place Bids to purchase Shares?
Placing Bids is an additional way to purchase Shares. You’ll still be able to use the Buy Now option.
IndexGain – bidding on shares is a way of obtaining shares in a player at a discount, however, if you bid too low, it might take a while to be matched and the price might go onto increase – leaving you with a bid, cash tied up and the player moving out of your price range.
When is my bet placed?
Your bet is placed when your Bid is Matched.
IndexGain – some bids are matched immediately, some are taking hours. Some have said that their bids have not been matched at all – that could be because the bid is too low.
Once I’ve placed a Bid, are funds immediately taken from my account?
Funds are taken from your account immediately (including commission). This is to prevent your account from potentially going into a negative cash balance should the Bid be Matched. Should you cancel your Bid, you will be refunded in full immediately (including commission).
IndexGain – we’ve found that funds are added back to cash balances immediately and there’s no delays.
Will I still be able to use the Instant Sell and Sell Queue options?
You’ll still be able to use the Sell Queue (Sell to Market) option.
Instant Sell will now be generated by Traders’ Bids and, where appropriate, a market maker. The price you’ll see in the Sell button (Instant Sell price) is an average of max 300 Shares from the highest Bids. We’ve changed Instant Sell to provide more liquidity, more transparency and tighter spreads. Users will have the option to offer more competitive prices, through Bids, than a market maker could before.
IndexGain – the instant sell price displayed may not be the price you end up selling at. Traders have asked why the instant sell price shows £1 but when you sell a smaller amount like 50 shares – the price is actually £1.10 (highest bid). This is because the £1 price is an average of the highest 300 bids and not the highest bid. This is a smart thing to note and can be a useful thing to experiment with when instant selling.
IndexGain – there is no functionality to set Sell Bids yet. This is phase 1 of the order book process. It will come soon though.
What happens to the Instant Sell price when there aren’t 300 Shares on offer via Bids on a footballer I want?
If there aren’t 300 Shares on offer via Bids, we use an average of however many Shares are on offer. If there are no Bids, there’s no price quoted on the Sell button.
Can I set my Bids at any price?
The lowest price you can currently set your Bids is around 60% of the footballer’s current Buy Now price (E.g. for a footballer priced at £10.00, the lowest you can Bid would be £6.00). This is known as the “Bid Zone”.
IndexGain – bid too low and you risk never being matched. Bid sensibly unless you are willing to wait an age.
Can Bids expire?
No. There’s currently no expiry time on your Bid. If you don’t want your Bid to be Matched, cancel it.
IndexGain – remember, bids are commission free until 31st July, even if it’s matched after this date – so get your bids in and keep them there IF you can afford to have your cash tied up for a few weeks.
Can I cancel my Bid straight away?
You can cancel your Bid immediately, and you will be instantly refunded the full amount of the Bid straight to your Football Index account (added to your cash balance).
IndexGain – to cancel on the app, swipe left on the bid. Very common question this.
Can I cancel my Bid if some of the Shares have been matched?
If your Bid has been Partially Matched, you can cancel the remainder of Unmatched Shares on the Bid. Please note, this must be the full amount of Unmatched Shares remaining on the Bid.
For example, if you place a Bid on 100 Shares and 50 Shares have been Matched, you can only cancel the full remaining 50 Shares. You wouldn’t be able to cancel 25 of the 50 Unmatched Shares.
If my Bid partially Matches, am I eligible to win Dividends?
Yes, Matched Bids are eligible for Dividends. Matched Bids follow the same Dividend deadline as the Buy Now option i.e. the Bid will need to Match before the Dividend deadline. You will be able to view the time your Share is matched in your Trade History.
Will the new IPO system be introduced with the Matching Engine?
No, this is not going to change the IPO functionality. We will be updating the IPO process in a subsequent release. Bids are initially disabled when a footballer is IPO’d.
Is there a daily cut off point for Bids Matching?
Bid Matching is an automated process, so they’re Matched throughout the day.
Why can’t I set Sell Bids or Orders?
IndexGain – That bit of functionality is most likely to come in phase 2.
Has this engine changed the way prices move up?
IndexGain – No, prices move up or down based on traders buying from the market or listing their shares (or unlisting). Nothing has changed on this front.
Bid matching does not influence price changes.
Is there a demo if it in action?
IndexGain – The wonderful Football Index Guide has produced this video demonstrating how it works here….