FAQ
- Is this like a Stock Market?
- Yes! In many ways this is like a Stock Market. Just like you would trade Google, Apple on an exchange,
you trade our products here. Just as the underlying performance (Profits etc.) drives the price of a share of Apple;
player / team performance (wickets, wins etc) drives the price of the product on these entities.
- Where does Alice buy a product from (before she could sell to Bob)?
- In trading stocks, one typically owns a share before selling it. On this platform, unlike stocks,
one doesn't need to own a product to sell it. When Alice sells 1 unit of a product, she owns -1 units. In effect she promises to either
purchase 1 unit from the market before the product expires or pay the maturity value of product at the expiry time.
- For every Alice who has -1 units of the product, there is a Bob who has +1 unit. As a result, the settlement on maturity is always possible.
- Since the net total units is always 0, there is no cap on the number of units of a product that can be owned by a person.
There will always be someone else to balance it. This is also unlike the stock market.
- Can I altogether exit before the expiry of a product?
- Yes. Exiting amounts to just ending up owning 0 units of each product. You may do this very profitably, depending on your timing.
The value in the bank reflects whether you made profits or losses.
- Can I enter mid-way through the event?
- Yes. The moment you find someone to trade with & execute a trade – you are IN!
- How do I know who wants to trade with me?
- The platform will maintain an order book. This order book has a list of products that are out for sale / out to be bought.
Against each order will be mentioned the price sought for the trade. If the price is favorable, you can trade!
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In case you don't find the unit you are interested in, you can place an order for others to see.