AllSportsMarket
covers NFL, NCAA Football and basketball, and World Soccer.
Then, as each season begins, other sports will be added to
the market. These sports include baseball, hockey, golf, Nascar/F1
and more.
You can act as a market maker or a trader - and you can either
back or lay a market/bet. And you do it against fellow members
and not an institution. You are charged a commission on each
trade by your broker, and this can vary between 2.5% - 5%
of the total transaction amount. There is an order cancel
fee of $0.50 if you wish to cancel an order before the time
you specified for it to expire. Half of that commission ($2.50)
goes directly into the Dividend Game Pot, and the remaining
half is split between ASM and your broker.
Every time a trade is made, 50% of the commission (from all
parties involved in the trade) is put directly into the Stock's
Dividend Game Pot. Example: You purchase 20 shares in RAMS
at $5 each. The commission is $5.00 and 50% of that ($2.50)
goes into the RAMS Dividend Game Pot. Each team's current
Dividend Game Pot is displayed on their profile page.
When a listed sporting event, game, or matchup is over, the
winning team takes part of the loser's Dividend Game Pot and
adds it to their own. This is called a "Pot Plunder",
or "Plundering" and usually takes place within an
hour of the final whistle. The amount that is "plundered"
varies from 20% to 50% of the loser's Dividend Pot. The percentage
is based on the teams' Leage Rankings. If a better team in
the Leage beats a worst team, they will plunder 20%. If the
worst team in the leage beats the best team, they will plunder
50%. Each team's current Leage Ranking can be found on their
profile page. After the "plunder" is added to the
winner's Game Pot, 25% of that sum is transferred to the winner's
Season Pot and the other 75% is paid out to all current shareholders.
This system rewards traders for recognizing the short-term
potential of an underdog, or the long-term potential of a
good team.
For football and other sports where the teams only have one
matchup per week, the dividends for the winning team are paid
out within an hour of the game ending. (Right after the "Pot
Plunder") For Leages whose teams play multiple games
per week (like baseball), then the "Pot Plunder"
takes place after each game ends, but the dividends for all
teams are paid out once per week, always on the same day.
Thus, if your team(s) did well in a week's time, you will
have a bigger dividend payout for that week. Season Pots are
paid out once per year, 30 days prior to the first game of
the new season. 25% of the Season Pot is transferred to the
Game Pot and the remaining 75% is paid out to all current
shareholders.
GO LONG OR SHORT
When a stock is purchased, it is termed a long position.
Once purchased, it becomes part of your portfolio and can
be sold at any time. The biggest rule in the stock-trading
world is Buy Low, Sell High. This means to earn a profit,
sell the stock for more than what you bought it for. Selling
it for less than the original purchase price will result in
a loss.
The other way to make profit is to sell short. This is where
a stock can also be borrowed from your broker and sold short.
This action indicates that the trader believes the price will
go down. In order to make a profit, you return the loaned
shares to your broker by placing a "buy to cover"
order. A profit is earned by purchasing shares for less than
the original sell short sale. This is considered an Advanced
trader method as losses can exceed the original investment
if a share rises rapidly in price. Use extreme care when utilizing
this method.
LIMIT AND STOP-LOSS ORDERS
When you purchase shares, you receive cash dividends for
as long as you own them. You can also create "limit"
and "stop" orders that will automatically buy or
sell stocks at whatever price you set, so there is no fear
of what will happen when you are not logged on. |
