How to make money on Football Index
In order transform your bit of fun on the side into a way of making serious returns you need to understand how to make money on Football Index. There are five ways to do this. Here we explain them all.
The standard trade
In simplistic terms, if you buy a share in Paul Pogba for £8.00 then you need to aim to sell it for more. How much more depends on your own preference. We have a separate article on ‘Knowing when to sell’ here for those who want some guidance.
The ultimate aim of any trader should be to sell their shares for more than what they paid for them. Until that step is realised, you probably won’t have made a true profit.
Of course, you need to remember there is a small commission of 2% on sales too.
How to make money on Football Index through Dividends
The other way you earn money is through dividend wins. There are three types of dividend pay out available.
Media Dividends
Every single day, players in your portfolio can win a media dividend. On a non-match day, the top three points scorers will win a dividend whilst days where games take place sees just the top scorer scoop the win.
How are winners determined we hear you ask? Well, Football Index track 20 UK based media outlets with an increase in global coverage due imminently. Where a player is mentioned, an algorithm determines how many points should be awarded. A positive news story is worth more points i.e. “Kyle Walker earns England call up” will earn more than “Kyle Walker breaks covid-19 lockdown“.
The player with the most points at the end of the day wins the dividend. Where three places are paid, the second and third placed players also win a dividend pay out but at a lower value. What if points are level? The player with the most recent story wins.
Match Day Dividends
First things first, match day dividends only apply to games that take place in Europe’s top five leagues (England, Italy, Spain, Germany and France), the European competitions (the Champions League and Europa League) and international tournaments as defined by Football Index. The amount paid as a dividend then varies by how many games are taking place on the specific day. That is then made clear with the match days split into colours – bronze, silver and gold.
On any given match day, there are four performance related pay outs. They are split by position; the top goalkeeper/defender, midfielder and attacker. The final award goes to the overarching star player across all positions.
From the 2020/21 season, Football Index have revised their scoring with the major change being the introduction of a standalone goalkeeper category.
There are a vast number of elements that feed the points scoring system. They say a picture is worth a thousand words so check out Football Index for the scoring system.
Team of the Month Dividends
Team of the month dividends are a recent addition to the Football Index platform but they’re a great addition for traders. The metrics for making the team are linked into the matchday dividends.
The formation of the team is consistent in a 3-4-3 and includes a goalkeeper. Each month the top three PB scores for each player will be added together to award each player a score. The highest scorers for each position (goalkeeper, defenders, midfielders and attackers) make the team.
Please do not make the mistake of thinking scores are a sum of every PB score in the month and only months with five matchdays will be included.
Where you three or four players that make the team, their dividend win is tailored from top scorer down to the third (defenders or attackers) or fourth (midfielders).
In-play Dividends
The final dividend is known as in-play dividend. It is based around a player achieving certain things during games e.g. scoring or assisting goals. As with match day dividends, only performances in eligible competitions qualify. Your players are not competing against anybody else so if your player produces the goods, you get paid.
It’s important to note that, unlike media and game day dividends, the in-play only apply to the first 30 days after purchase of a share. We suggest you check out those fixture lists.
The Holy grail
It’s easy to get hooked on a dividend winning machine when you see Twitter awash with their wins. You can see why people love it because it’s a bonus to the bank sheet but just remember it’s not everything.
Take Pogba for instance, on March 19th he was valued at £8.21 but today (50 days later) his value is just £7.70. A drop of 51p. Given the highest pay out for an individual dividend win is 5p (media win) you’d need several triumphs to cover the price drop.
With that in mind, our advice would always be to buy with the overall value growth in the forefront of your mind. Hopefully, you now have the answer to the question ‘how to make money on Football Index’
Check out our tips page here for up to date advice.