How it Works
THE SPORTS STOCK MARKET
Prices are determined by preseason win or price totals, the number of games that a team is expected to win that season. Should a team exceed that preseason mark, their prices will increase. Win-loss record, injuries, trades, and draft picks all affect share price value. Each sport has a unique return model for how much prices will fluctuate by the end of the season. For the NFL, as an example, there’s a + or - 10% return for each game above or below that win total. If a team is projected to win 8 games but they ultimately win 10, that team’s prices would finish up 20%. If that same team only ended up winning 7 games, their prices would finish down 10%.
Prices fluctuates all season long, however, based on how many games a team is expected to win at that time, allowing you to buy, sell, and short all season long. Prices will fluctuate all season based on how many wins or prices it appears a team will achieve at that particular moment. At the end of the season, prices lock, and next season’s price will fluctuate 10% off the prior season’s end prices. Though prices fluctuate season to season, your shares in a team never expire. You own that team’s shares until you decide to sell.
Whenever you make a trade, you have the peace of mind in knowing that Fandex always will repurchase your shares in the future should you ever wish to sell.
To short a team, pay the current share prices and in closing Fandex will credit or charge the prices difference.
As you now know, trading with Fandex doesn’t just stop at the end of a season. Whether it’s the playoffs, draft day, start of free agency, or opening day, prices always are fluctuating. With Fandex, there truly is no off-season! Click here
to join other Fandex participants to start buying, selling, and trading your own teams.