Football Index with no football being played. Seems like a bit of an oxymoron but believe it or not the platform is in the lucky position to still function without any football fixtures in the calendar. If you had your money in the FTSE 100 right now you would certainly have less room for manoeuvre.
At the time of writing, all professional football (except Belarus by the looks of things) is now suspended or cancelled for the current respective seasons.
The big 5 leagues which matter to Football Index were suspended, what now feels like a long time ago so there has been no football to trade since.
How has that affected the index? Well, thankfully not too badly. The ‘FOOTIE’ which measures growth in the market has shown 7 days of positive growth
It’s likely your portfolio has taken a bit of hit unless you own the big media players. Performance only players have naturally taken a hit with there being no matches for them to challenge for performance dividends. But there has been no huge crash, no mass panic selling and ultimately the market has stayed relatively stable.
This is down to a few things and the ability Football Index chiefs have to change the mechanics of the platform. They have massively increased spreads and if we’re being honest, that is what is holding up a lot of prices at the minute. Instant Selling players now will cost you in the region of a 40% hit to your profits so unless people really have to they are not hitting the panic button.
Football Index have also implemented some other strategies to try and stimulate the market.
£1500 Trading Bonus
You can now get 8.25% of your net buys back between 10th March 2020 and 23 April 2020.
Net buys = total value of shares bought – total value of shares sold
This is a really good incentive for traders to add money into the market and will pay out up to £1500 so not to be sniffed at. As with most deposit bonuses, it is best to get your money into the market sooner rather than later. It’s not advisable to leave it to the 11th hour to get your bonus money in as there is likely to be a last-minute rush anyway.
Football Index have doubled ALL types of dividend payouts from 10th March 2020; Media, Match Day and In-Play. Since they’ve done this all football has been postponed or cancelled so Media Dividends are the only dividends still available to play for. Since their initial announcement FI have increased Media Dividends as below.
Reducing Thresholds for Match Days
Thresholds for match days were also reduced to the below but this has now become irrelevant with no football being played.
So how should we trade during these turbulent times to make the most of the trading bonus or should we even trade at all? It’s worth looking at the possible outcomes, in terms of football returning, to try and navigate our way through the current situation.
- Euro 2020 is pushed back to later on in the year or next year and football seasons finish late but do finish. This is perhaps a more likely scenario at the minute. With so much at stake in the respective leagues, it makes sense that leagues will do the utmost to get them finished even if that means playing behind closed doors.
- Euro 2020 is pushed back to later on in the year or next year and football seasons are cancelled / void. Football starts again 20/21 season. Perhaps less likely at the minute. Statements from the EFL look to be expressing a desire to do what they can to finish the season but the government will obviously have the final say on this.
Scenario 1 means that performance players will come back into fashion a lot quicker. Scenario 2 means we could see a big drop in performance players if spreads are lifted at some point. The caveat here is traders like to get ahead of the game so would start buying performance players ahead of next season in the next couple of months anyway.
Either way, it looks sensible to target media-friendly players at least in the short term. Such as:
- Bruno Fernandes
The transfer window is still due to go ahead (although who really knows what’s going to happen) so targeting likely transfer moves is still a good strategy. Suitable targets may be:
- Van De Beek
There are still plenty of options outside of these players of course and as always make sure you do your own research. If you can find performance-friendly players that fit the above criteria then that might be the best strategy right now.
Be careful if you are trading now and if you are, make sure you try and stay up to date with current affairs so you can react to any news. If you can navigate this period and take advantage of the deposit bonus then it could be quite profitable. It’s certainly not advisable to use the Instant Sell function right now with the spreads as they are unless you really have to. You can also choose to sit on your hands during this period and ride it out. If you have a good portfolio then it will recover once conditions return to normal. It’s also worth noting that the Football Index Welcome Offer which consists of a £500 money-back guarantee is still available during this time.
Happy trading all