By Oliver Liebscher @ 2020-08-28 22:18:06
Launched in 2015 Football Index is a combination of stock market trading, fantasy football and football betting.
In a nutshell, you purchase a share in a player, then if the player performs well, you can sell your share at a profit. This is known as “capital appreciation”. However, just like a real stock market, your shares can go down as well as go up.
Aside from capital appreciation, you can also make money from your players through dividends. For example, this is where your player performs well in a match and as a result Football Index pays you between 1p and 6p per share owned in that player. Football Index pay media dividends, match day dividends and in-play dividends - read more about the dividends here.
Football Index Pros:
Football Index is typically good for long term engagement with players. Football betting is more instantaneous and in the moment. Let’s take a look at them side by side:
|Football Index||Football Betting|
|Stake amount||Typically higher amounts||Typically lower amounts|
|Time period of bet||Typically long term||Typically short term|
|Probability of earning a profit||Typically higher than betting||Typically lower than Football Index|
|Stake vs returns||Typically, higher stake, lower returns||Typically lower stake, higher returns|
The table above is based on average player behaviour, risk and probability are the choice of the user when placing their bet. However, in our experience, Football Index is typically longer term with lower rewards but much more likely to generate returns than football betting.
To give you an idea of the kind of returns you can achieve if you select a young, upcoming player at the right time in their career. The returns you would have made on Adama are just ridiculous!
£3.15 → £9.70 (July 19 - July 20)
£0.67 → £3.16 (July 19 - July 20)
£2.74 - £10.39 (July 19 - July 20)
£5.83 → £14.47 (July 19 - July 20)
£3.83 → £7.73 (July 19 - July 20)
Football Index pays dividends on the shares that you own. The amount you earn varies, but it’s typically 1p - 6p per share. To earn a decent amount you really need hundreds of shares. These come in three different forms:
The Spread is a common term in trading shares. It's essentially the difference between the buy price and the sell price of a player. For example, Raheem Sterling has a buy price of £5.79 and a sell price of £5.45 - a difference of 2%. This means, when you buy shares in a player just to break even the value of the player must increase by 2% before you sell.
That 2% is commission to Football Index and how they make their money.