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AllSportsMarket FAQ's
WHAT IS ALLSPORTSMARKET (ASM)?AllSportsMarket (ASM) is the world's first, online sports stock market trading exchange where traders buy and sell issues in real sports teams for real money.
IS TRADING BETTER THAN SPORTS BETTING?There are two major reasons why the sports trader will be better off than the sports bettor: Capital growth - The sports trader is investing in a capital asset and therefore can profit from any increase in capital value from the time of any shareholding. Of course the value of the asset will fluctuate due to market forces and can even go lower than the purchase price but it is unlikely to reach zero (i.e. only in exceptionally rare circumstances will the stock have no value). The sports bettor can only profit from wagering correctly on a certain result of an event but bet incorrectly on a result and the entire wager is fortified (lost). The sports bettor also has no means to take advantage of capital appreciation of an asset in sports betting. Dividend income - The sports trader being a shareholder in a capital asset, will receive income from dividend payouts. This is ongoing income for the sports investor for duration of any ownership in the asset. Dividend income does not apply to sports betting. In a conventional sense, you can literally profit from sports trading by doing absolutely nothing. After purchasing shares in stocks, you can sit back with your feet up and receive dividend income (and be in profit from capital appreciation). The sports bettor must be involved and place a bet to receive potential profit. Of course, it's in the sports traders' interest to monitor their portfolios, even in a passive manner but this simplistic comparison still applies.
WHY TRADE WITH ALLSPORTSMARKET?ASM is the pioneer of trading in sports issues and thus, creating the first sports stock market. Since August 2004 when ASM officially opened for online trading, it has perfected its trading exchange operation with ongoing help from active traders. ASM is dedicated to grow and evolve to remain the leader in the concept of sports trading.
HOW REAL IS ALLSPORTSMARKET?Realism is a key objective with ASM. The trading exchange is based on Level II trading interface found in major financial trading exchanges. Although this concept can be marketed as a game or contest, real money is exchanged for shares in real sports teams.
WHAT SORT OF THINGS CAN I TRADE?Markets can vary on sports trading exchanges but typically you will find many major national leagues covered (NBA, MLB, NFL etc) as well as international markets covering football (soccer), motor racing, golf and tennis markets to name a few.
HOW RISKY IS IT TRADING WITH ALLSPORTSMARKET?All forms of investment have an element of risk. Trading and investing with ASM is no different and since real money is involved, one should only use expendable funds. Once again, investing demonstrably has lower long-term risk over conventual sports betting.
IS MY MONEY SAFE WITH ASM?AllSportsMarket acts as the trusted financial mechanism between traders. Your funds are held in an individual trust account and remain there until you request a withdrawal, or make a trade. When you execute a trade, ASM instantly transfers the money between the involved trader's accounts. Unlike sportsbooks, your deposited balance can never be used to fund another player's withdrawal, because funds only move between accounts when there is a transaction. This ensures that your balance is always available for withdrawal.
HOW DOES ASM MAKE MONEY?Income derived from the commissions generated from the buying and selling of issues in exactly the same manner as conventional brokers and markets is taken by ASM. Both parties involved in a trade, pay 5% each of the transaction value in way of commission. Approximately 25% of the commission value is taken by ASM (50% of the commission value is returned the game pot and 25% is taken by the acting broker).
WHAT ARE THE TRADING HOURS?The ASM trading exchange operates 24 hours a day, 7 days a week for the whole year; the market never closes for trading. The official end of the trading day is midnight ET.
HOW DO I MAKE MONEY WITH ASM?As in conventual financial trading markets, you profit from gains made in the purchase of stock and sale in the future at a higher price (there are other ways such as short selling; explored further in this site). You also earn dividends from your holdings in stocks. ASM has other advantages for exchange members with the availability of being able to form partnerships (holding companies) and becoming barons.
WHAT ARE GAME POTS AND SEASON POTS?Commissions taken from trading activity and monies received from "pot plundering" after games are transferred to the Game Pot. The value of the Game Pot therefore is the amount that dividends are based upon for payment to shareholders on a pro-rata basis. A nominated percentage (currently 25%) is transferred from the Game Pot at dividend payout time to the Season Pot for league-end payment to current shareholders. An alteration to the season pot payout will be implemented by March, 2006.
HOW DO DIVIDENDS WORK AND WHEN DO I GET THEM?When a listed sporting event is over, the winning team takes part of the loser's 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' league rankings. If the best team in the league beats the worst team, they will plunder 20% and conversely, if the worst team in the league beats the best team, they will plunder 50% (each team's current league ranking can be found on their profile page). Depending on the dividend payout schedule of the particular league (market), 75% of the value in the Game Pot is paid out to current shareholders on a pro-rata basis. The payout frequency of dividends generally works out like this: For leagues where teams only have one match-up per week (e.g. football), the dividends for the winning team are paid out within an hour of the game ending (right after the "Pot Plunder"). For leagues whose teams play multiple games within the week (like baseball), the "Pot Plunder" takes place after each game ends, but the dividends for all teams are paid out only once a week and always on the same day of every week. An alteration to the season pot payout will be implemented by March, 2006.
DOES ASM REPORT MY EARNINGS?AllSportsMarket does not report your earnings to any agency, ever and ASM will never ask for your social security number
DON'T I NEED A LOT OF MONEY FOR TRADING WITH ASM?The simple answer is no. You can start with as little as $25 by making a deposit into your ASM account to start trading. However, this relatively small amount is restrictive for buying opportunities and the more funds you have available, the greater opportunities available to you; this is know as capitalization and being under capitalized (i.e. insufficient capital) works against any trader.
DON'T I HAVE TO BE A PRO TO BE TRADING?Absolutely not! In fact, it's a great way to combine your sports interest to learn about trading and investing in a fun, cost-effective (cheap) and potentially, profitable way. With the experience you gain with ASM, the trading skills you developed can be carried over to real-world trading exchanges such as Wall Street or any financial trading exchange of your choice.
HOW MUCH TIME DOES TRADING AT ASM REQUIRE?You can trade as often or as little as you like as there are absolutely no requirements to be a trader at ASM with volume, trades, logins etc that you must maintain but you'll likely find once you get started, it can get quite addictive by monitoring your trades and the general action at ASM. It is naturally in your best interest to monitor your trades on a regular basis and to alter any stock trading plan when necessary. Once you have made a trade in a stock, it will remain yours indefinitely (unless special circumstances imposed by ASM warrant otherwise) and you will be credited ongoing dividends into your account. Logging in to ASM on a regular basis will not only keep you abreast of your stocks but you can be kept aware of regular contests and promotions ASM makes.
CAN I USE THIRD-PARTY TRADING TOOLS WITH ASM?AllSportsMarket SDK allows you to design your own research or trading platform and interact with the system. ASM offers real-time streams of data for your use with the SDK. You can also use tools built by other AllSportsMarket users and exchange members.
HOW MUCH DOES IT COST?You can start with as little as $25 to fund your ASM account and start trading. The only cost of trading you pay is 5% in commission fees in the transaction value of any trade you execute.
HOW DO I DEPOSIT AND WITHDRAWN FUNDS?You make deposits into your account using PayPal, NETeller, PrePaidATM, or one of the following credit cards: Visa, MasterCard, American Express, or EuroCard. E-check deposits are also available to U.S. clients. You can withdraw funds via any method you used to deposit. Payouts going back to your credit card(s) can only be done within 30 days of the deposit charge. Verify methods of funds transfer with ASM as options can change and others are added.
HOW DO I GET STARTED AND WHAT IS REQUIRED?Visit AllSportsMarket to open a free account and you are eligible to claim a free $5 bonus (no deposit is necessary to claim your free $5 bonus!). Once you open an account and it is active, you will get a better idea of the functionality of ASM's trading exchange. Although you will be able to buy stocks with your bonus money, you may find limited opportunities to purchase any stocks with insufficient funds. You can however, top up your account by making a deposit (only $25 minimum deposit) to exploit greater trading opportunities. |
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