How it Works



How it Works


THE SPORTS STOCK MARKET

FANDEX offers synthetic shares in sports teams that fluctuate based on team performance. (A synthetic share is created by buying or selling the underlying financial instrument which, in our case, are sports league teams.) When teams perform well, their share prices increase, and when teams perform poorly, their share prices fall.

Prices are determined by preseason win or point totals, the number of games that a team is expected to win that season. Should a team exceed that preseason mark, their price 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 price 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 price would finish up 20%. If that same team only ended up winning 7 games, their price would finish down 10%.

Price 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. Price will fluctuate all season based on how many wins or points it appears a team will achieve at that particular moment. At the end of the season, prices lock and next season’s prices will fluctuate 10% off the prior season’s end price. 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 price and in closing FANDEX will credit or charge the price difference.

At the conclusion of the regular season, new win totals will be released for the playoffs to which price will fluctuate off the same predetermined values. One win difference in the playoffs is the same as a one win difference in the regular season. For the NFL, that means finishing one win under a playoff total corresponds to a 10% fall in price.


So 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.