How to Trade
- The New England Patriots to win the Super Bowl
- Giants at Redskins - Giants to win by more than 3.5 points
- Packers at Bears - Over 37.5 points to be scored in the game
- Chiefs at Broncos - Patrick Mahomes to throw more than 2.5 TD passes
- Vikings at Cowboys - Ezekiel Elliott to rush for more than 99.5 yards
- If the outcome is YES then the market will settle at $100
- If the outcome is NO the market will settle at $0
Buy or Sell?
- If you think the outcome of the proposition will be YES (and therefore settles at $100) you will BUY shares
- If you think the outcome of the proposition will be NO (and settles at $0) you will short SELL shares
Before the game starts:
- Trader A thinks the Giants will win by more than 3.5 points, so he buys shares at a price of $55
- Trader B is on the other side of that trade; she thinks the Giants will not win by more than 3.5 points and sells shares for $55
- Trader A has a profit of $45 per share
- Trader B suffers a loss of $45 per share
- Trader A suffers a loss of $55 per share
- Trader B has a profit of $55 per share
- Trader C buys shares for the Giants to win by more than 3.5 points at $55
- The Giants go out to a 7 point lead and the market swings up to $67
- Trader C sells his shares at $67 for a profit of $12 per share
- Trader D sell shares for the Giants to win by more than 3.5 points at $55
- The Giants fall behind by 6 points early and the market falls to $22
- Trader D buys back her shares at $22 for a profit of $33 per share
(Trader D has essentially bought low and sold high to make a profit – but did this in reverse: selling high first, then buying back for a lower price)
THE TRADESPORTS INTERFACE
Market Data & PRICES
Here you see the propositions listed for the event, along with the following information:
- The BID price: this is the best (highest) sell price currently available - along with the number of shares you can sell at this price
- The ASK price: this is the best (lowest) buy price currently available - and the number of shares available at this price
- The Last Trade price is the last price each proposition traded at
- The Shares Traded column shows the total number of shares traded for each proposition since trading opening for the contest
Click on a proposition to select it for trading and it will turn dark blue to indicate that it's selected.
The order book shows you all of the unmatched orders to buy and sell shares:
- The BIDS: these are all of buy orders waiting to be matched by a seller. They're listed are in descending price order - with the higest (best) price at the top, along with the shares available at each price. If you're interested in selling shares, this is where you'll look to see what prices the buyers are currently "bidding" for shares.
- The ASKS: these are all of the unmatched sell orders waiting to be matched by a buyer. They're listed in ascending price order - with the lowest (best) price at the top, plus the number of shares wanted at each sell price. If you're looking to buy shares, this is where you'll look to see what prices sellers are currently "asking" for shares.
This is where you enter your orders to buy and sell shares. Enter the number of shares you want to trade, and the price at which you want to trade - then hit the BUY or SELL button.
Your order will then be sent to the market. If it can be matched (in full or partially) with an existing open order, a trade will happen and a position will be established. If it cannot be matched, your order will sit open in the market (and listed on the Order Book) until it gets matched at a later time.
MONITORING YOUR TRADING ACTIVITY
The My Trading panel is where you monitor all of your trading activity for the selected market. It has a number of tabs:
This tab shows all of your current trading positions. The following information is shown:
- Shares: This shows the size of your position. Long positions (where you've bought shares) are shown as a green positive number, while short positions (where you've short sold shares) are shown as a red negative number.
- Avg. Price: This is the average price of your position - the price all profit and loss will be calculated from. This is a weighted average number if you've bought shares at different prices.
- Realized P/L: This is actual profit or loss from trading shares. If you've bought shares and then sold them again for a higher price (or sold them first and then bought back later for a lower price) you'll generate profit - which will be added to your funds and shown in this column as a green number. If you've traded shares for a loss, that loss will be shown as a red number. This is a net number, so losses are subtracted from profits to get the net overall profit or loss.
- Unrealized P/L: This is your potential profit and is calculated by comparing the average price of your position against the last trade price. If you traded into a long (buy) position at 55 and the last trade price was 60, then your Unrealized P/L will be 5 per share. It's important to note that it's not actual profit or loss, it's just a guide to how much your profit or loss would be given the current market prices.
- Total P/L: This number is your Realized P/L added to your Unrealized P/L.
This tab lists all of the open orders to buy or sell shares that you currently have live in the market. The following information is shown:
- Shares: This is the number of shares you wanted to buy or sell with your original order.
- Price: The buy or sell price listed on your order.
- Filled: How many of your shares have been matched to date. You may have entered an order to buy 100 shares and 75 have been matched. The Filled column will show those 75 matched shares.
- Open: Shows how much of your original order is still waiting to be matched. Using the example above: if 75 of your 100 shares have been matched, 25 shares will be shown here in the Open column.
- Status: This tells you if your order has been unmatched (none of your original order has been matched so far) or partially matched (some of your original has been matched).
You also have the option to cancel your Open Orders by hovering over an open order and clicking the X icon. Or you can cancel all of your Open Orders using the CANCEL ALL button at the top of the tab.
This tab shows how much is frozen to cover the maximum potential loss for all positions and open orders. It shows the following information:
- Positions: Shows the size of your trading positions. A green positive number shows a long (buy) position and a red negative number shows a short (sell) position.
- Avg. Price: The average price of your position. This number is used for all profit and loss calculations associated with that position.
- Max Profit: The maximum potential profit for your position. If it's a long (buy) position then it's calculated using your average position price and desired expiry price of 100. If it's a short (sell) position then it's calculated using your average position price and the desired expiry price of 0.
- Max Loss: The flipside to the Max Profit number - this shows the maximum potential loss of your position. If it's a long (buy) position then it's calculated using your average position price and the losing expiry price of 0. If it's a short (sell) position then it's calculated using your average position price and the losing expiry price of 100.
- Open Orders: This shows how many shares you have waiting to be matched on open orders. A green positive number indiciates you're buying shares, and a red negative number indicates you're selling shares.
- Frozen Funds: This shows the amount of funds that are frozen to cover your maximum potential loss for your positions and open orders. The Max Loss number explained above shows the maximum amount you can lose on your position. It does include any potential losses from your open orders.
This tab shows a log of all trades made during the contest, plus any profit or loss associated with that trade. You also have the option to download a CSV file of your trades.
This shows you the funds you have for the current contest:
- Available Funds: How much you have available to trade with right now.
- Frozen Funds: How much is frozen to cover potential losses on your positions and open orders.
- Total Funds: The sums of Available Funds and Frozen Funds.
Any Realized P/L accumulated during trading will be applied directly to your Available Funds and can be used immediately for further trading. Unrealized P/L is not added to your funds however - not until you make an actual trade and turn the Unrealized P/L into (actual) Realized P/L.
For more information about how Tradesports works, please check out our Knowledge Base.
And if you've any questions, please don't hesitate to contact us for help at: email@example.com