Frequently asked questions
Joining a new game can be intimidating in the first place. In this FAQ you will find information about how the main part of the game, the FootBroker Stock Market, works and you interact with it. General information such as Buy and Sell Orders of players, Dividends and other details will be here as well. You'll also find useful information about the idea behind the FootBroker in How it Works page.
- What are stocks or shares?
- What is the price of a stock?
- How do I buy and sell player stocks?
- Why are there limitations on buying or selling stocks?
- How do I follow my progress?
- What are dividends and losses?
What are stocks or shares?
In the Stock Exchanges, the shares are negotiable nominative securities that represent, for who owns them, a fraction of the capital stock of a company. Stock or share is the smallest part of a company and every stock is like a little piece of that company. Here at FootBroker, stock is a part that you purchase from a player.
You can buy one or several shares of the same player, it will all depend on your strategy and also how much you have in cash to invest.
What is the price of a stock?
Stock prices are formed through the interaction of supply and demand forces. The current quotation of a share is the value of the last trade.
Since trading can be carried out at any time of the day (including weekends and holidays), the stock price fluctuates according to the negotiations that are being carried out.
How do I buy and sell player stocks?
The purchases and sales of the shares in FootBroker are made through Buy Orders and Sell Orders. An order is nothing more than an offer you make to buy or sell, in which you inform the price you want to pay (buy) or sell (sale), in addition to the amount of shares you want to transact. A trade occurs when the highest buy order (or offer) to purchase a certain share is equal to a sell order, or when a sell order is equal to a buy order.
Let's take an example, consider a stock for the player Ashley Cole, his current price is F$0.45 and we have the following orders to buy and sell:
As you can see, there is an offer to sell 8 stocks for F$0.46 each, and an offer to buy 20 stocks by F$0.45 each. As both seller and buyer didn't have a common agreement in price and quantity, there is no trade and both orders are still open until someone agrees with one of them.
You, as a buyer can use the button Buy Now to automatically add a buy order with the amount and quantity proposed by the seller. When that happens, a trade is executed as both buyer and seller are in agreement.
Why are there limitations on buying or selling stocks?
As a market rule to prevent one or more users, especially those with higher equity, from manipulating stock prices to take advantage of and/or not allowing recent-joining users to play, some limitations in the negotiations were created:
- for new orders (buy or sell), the price you give, if compared with the player current price, is limited to 3% of maximum variation;
- you can't add a buy order that has higher price than an open sell order for the same player;
- you can't add a sell order that has lower price than an open buy order for the same player;
These rules have the objective of avoiding manipulations and give more movement to the market.
How do I follow my progress?
What are dividends and losses?
A company must split profits with its shareholders. That is, the Dividends correspond to the share of profit distributed to the shareholders.
Here at FootBroker, the holders of the shares receive Dividends when:
- The club that the player is part of wins an official match in the MLS. This dividend has different proportions based if the team played at home or away;
However, there are losses as well:
- The club that the player is part of loses an official match in the MLS. This loss has different proportions based if the team played at home or away;
The loss will decrease your cash balance, and may even be negative. When this happens, you will no longer be able to buy stocks before selling some players from your portfolio so you can have cash on hand for new investments.
Dividends and loss ratio
Obviously, such dividends or losses are proportional to the number of shares that the investor holds of a particular player. For example, if you only have 1 share of a player your dividends will be much smaller than the investor who owns 25 shares of that same player.
Deadline for dividends and losses
In order for the shares to be considered eligible for the right to receive dividends or losses, they must be purchased before the event that awards them.
New performance types
Overtime, new categories of dividends and losses will be added to the game, making it even more realistic.