Undercutting on Football Index

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Undercutting on Football Index: Is it a Problem?

I hope that today’s article is an educational one, as it’s something which definitely needs looking at. I’m going to be discussing the ‘Undercutting’ problem on Football Index, which has hopefully been made a bit less effective due to the new 12 levels of market depth. Let’s get straight into this.

The Undercutting Problem

The Undercutting problem starts with traders, but it doesn’t mean that it’s your fault. In all honesty, there’s not a great deal of education on Order Books available. Football Index are upgrading their academy, but this may take some time due to them having lots of tasks in the pipeline, currently.

I actually have an example of the undercutting on the platform, as I decided I would waste some of my Jadon Sancho dividends on an educational post. I plan to release a video down the line too.

On Football Index, an undercut is simply when you have a player for sale at the lowest price, but someone else comes in with an even lower offer. It can create a bloodbath. This article is just a short post to explain how to avoid getting yourself into scenarios which can cost you some of your profits.

Ready to Start Trading?

When you register at Football Index, you can claim a special offer. This will enable you to trade risk free, where any losses up to £500 are refunded, as cash. Remember to use code FIA when you sign up.

The Undercutting Example

There could be a few reasons why a trader wants to sell his shares fast, such as:

  • They’ve spotted the next ‘mover’. You don’t mind losing 1p to get on the next £100 rise.
  • Injury
  • Suspension
  • Desperation
  • Rash Decisions

There’s nothing wrong with wanting to sell your shares fast, so let’s make that clear first. There are always going to be certain circumstances where you’ll benefit from selling your shares fast. However, undercutting occurs when you aren’t actually selling any shares. You’re just battling with another user to become the cheapest price on the market.

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