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IPD's - a thread
Before I begin (and to put this into context), I am not a huge IPD trader & I have a varied port of likely & potential dividend winning players. I have read PB Man's thread regarding scrapping IPD's & have seen other large accounts in agreement with this idea.
Before I begin (and to put this into context), I am not a huge IPD trader & I have a varied port of likely & potential dividend winning players. I have read PB Man's thread regarding scrapping IPD's & have seen other large accounts in agreement with this idea.
At the moment, we are in a state of flux on the index and liquidity is clearly the main issue. The so called, 'lower end' of the market has been an enjoyable place to trade recently and a welcome relief from the constant falling prices of the premium assets on the platform.
Why so?
Fun!
* The IPD market offers the buzz of a 40p striker scoring a goal for his team and providing you with an instant win.
* Regardless of the PB score he ends up with, it is satisfying to see that your player has returned a 5% yield from one goal.
Fun!
* The IPD market offers the buzz of a 40p striker scoring a goal for his team and providing you with an instant win.
* Regardless of the PB score he ends up with, it is satisfying to see that your player has returned a 5% yield from one goal.
Low barrier to entry for new traders:
* Football Index is quite a complicated product to understand as a new user. IPD's are the most simple of dividends to comprehend. If your player scores a goal or assists, (or keeps a clean sheet for the GK'), you earn dividends.
* Football Index is quite a complicated product to understand as a new user. IPD's are the most simple of dividends to comprehend. If your player scores a goal or assists, (or keeps a clean sheet for the GK'), you earn dividends.
* As a new user, you are likely to understand this concept more easily in the first instance
* IPD's also allows new traders to build a larger cash balance more quickly. If a new trader joins and spends £50, they could buy 10x a £5 player who may win PB
* IPD's also allows new traders to build a larger cash balance more quickly. If a new trader joins and spends £50, they could buy 10x a £5 player who may win PB
* Or, they they could buy 100x a 50p striker who will likely win numerous 2p wins in his 30 day window.
* As this bank gets larger and the new trader spends more time on the platform, they can then put their winnings into longer term PB winning assets.
* As this bank gets larger and the new trader spends more time on the platform, they can then put their winnings into longer term PB winning assets.
Liquidity
* The notion that liquidity is poor in the lower end of the market, is quite simply incorrect.
* As players do not need a huge amount of money to provide a bid on 300 shares, the right players in this part of the market have been very liquid throughout recent months
* The notion that liquidity is poor in the lower end of the market, is quite simply incorrect.
* As players do not need a huge amount of money to provide a bid on 300 shares, the right players in this part of the market have been very liquid throughout recent months
To summarise - IPD's are a fun & rewarding part of the FI experience for many. They provide an 'entry level' dividend that can help get new traders immersed in the product & make more of the market have value. FI need to make a number of changes, but IPD's are not one of them.
