Last updated on: 08/06/2020
4.5. How does the marketplace actually work? 4.5. How does the marketplace actually work?
The FOOTBID Marketplace composed by two distinct subMarkets built upon proprietary copyrighted algorithms: primary market: issuing and repurchasing of player shares by the platform itself; secondary market: trading of player shares between the platform's users.
When a player is added to the platform, the FOOTBID team will setup a first issue price linked to his real market value according to external sources which will be used for the first share issued only [FAQ 4.1].
Over time, on the '(1) primary market', and up to the communicated maximum number of shares per player, the FOOTBID platform will be willing to issue an additional share at a price premium. On the other hand, it will also repurchase your shares at a price discount if you cannot sell them in the secondary market [FAQ 4.11].
Complementarily, once a user owns a specific share of a player, he will be able to sell it on the '(2) secondary market' to other users who have placed corresponding buy orders. For instance, if the best buy or sell prices do not suit you, there is the option of placing custom orders [FAQ 4.6 / 4.7] which will be matched against those from the other users [FAQ 4.8].
To guarantee a smooth and linear user experience, these two submarkets are not differentiated in terms of navigation and you will always be served with the principle of best price [FAQ 4.13 / 4.14] - this means that the price presented to you on best buy or sell buttons will always be the best, regardless of the submarket considered.
4.8. How are custom orders matched? 4.8. How are custom orders matched?
The custom orders matching algorithm will run continuously to try to find buy and sell orders for a player's share within compatible pricing. For increased transparency, this process runs only for the secondary submarket [FAQ 4.5] (i.e. between user orders).
Following the best price principle, in the scope of a custom sell order, the first matching buy order to be processed will be the one with the highest price. Conversely, in the scope of a custom buy order, the first matching sell order to be processed will be the one with the lowest price. In both cases, if more than one order with the best price exists, the oldest will be the one considered first.
Also following the best price principle, the price considered for the transaction will be the one from the selling order. For instance, if the best selling order is priced at 700 coins and the best buy offer is priced at 1 000 coins, a transaction will occur for those orders and will be registered at 700 coins.
After the orders are matched and validations ran (e.g. buying user has sufficient funds), a transaction will be generated for each relevant share, changing its ownership, executing the transfer of the respective FOOTBID coins and generating the charging of a transfer fee [FAQ 4.9].
Note that orders will be matched regardless mismatches in quantity. For example, if the buy order is for 3 shares and the sell order only for 2 shares, 2 transactions will occur, the sell order will be closed and the buy order will remain partially open waiting for the last share to be matched.
4.9. What are transfer fees? 4.9. What are transfer fees?
Transfer fees are fees charged by FOOTBID, whenever a transaction is conducted between users (i.e. in the secondary submarket [FAQ 4.5]), for the exchange services provided. Currently, an unique fee of 5% of the transaction price is charged to the selling user's virtual coin balance.
4.13. How is the best buy price calculated? 4.13. How is the best buy price calculated?
4.14. How is the best sell price calculated? 4.14. How is the best sell price calculated?
The best sell price is the highest price of all buying orders currently open for that player's shares, considering both FOOTBID submarkets [FAQ 4.5] (i.e. the price at which the platform would be willing to repurchase a share and the prices of all open buy orders placed by other users).
4.16. Why is the best buy button disabled for a specific player? 4.16. Why is the best buy button disabled for a specific player?
The best buy button may often be disabled for several reasons. For instance, if you do not have enough funds to buy a share of a given player, you will be inhibited from doing so.
Another case where the best buy button may be disabled is if there is no supply in FOOTBID marketplace [FAQ 4.5]. This means that no one is currently interested on selling a share of that player, hence no best buy price can be calculated. In these cases, you may place a custom buy order and wait for a matching sell order.
You may check the reason for the inability to use the buy button by reading its tooltip.
6.2. How are the FOOTBID Leagues different from other fantasy leagues? 6.2. How are the FOOTBID Leagues different from other fantasy leagues?
The FOOTBID fantasy Leagues module offers several innovative features compared to other options available, namely including the 4 key differences presented below:
- Player availability and pricing is defined by the FOOTBID Marketplace, which replicates a financial market [FAQ 4.5], thus creating a more realistic scarcity on player acquisition and use on matchday;
- Users may apply different number of player shares in order to increase or decrease a specific player's weight in the overall team performance, hence allowing for much more granular strategies than on traditional fantasies [FAQ 6.19];
- Instead of a scoring approach based on a limited set of match metrics, the FOOTBID leagues consider the rating provided by experts [FAQ 8.2] as the ultimate notation on player performance, thus levelling the playing field for players of all positions;
- League creation in FOOTBID is available to all users who may customize their challenges, for instance, creating a league only for midfielders or with a 5-player team [FAQ 6.7].