It has been exactly two months since the beta fantasy sports trading website Tradesports.com went live. Tradesports is owned by Ron Bernstein, former co-founder of fallen trading exchange Intrade. The fantasy sports website, which allows users to engage in contests in competition for real money prizes, is powered by the same technological platform as previously licensed for Intrade.
TradeSports is an entirely separate company other than making use of the Intrade software. The angle of the platform is similar in concept as well: You approach sports trades the way you would attack a financial market. There are some key differences worth noting.
Is there an IPO used in TradeSports?
Shares are created as users buy and sell from one another. The more trading activity, the more shares that end up being created. A new contest begins trading activity. At the time of contest creation no shares exist for any stock. Traders at free to place orders to buy a certain number of shares; other traders must agree to short (or sell) the shares. The first trader would then have a position of however many shares were agreed upon. In summary, while an infinite number of shares can be born this way, traders must be willing to short sell for the market to be fluid. There are always an equal number of shares on both the buy and sell side.
Trades made through the real-time trading contests are directly with the other website users as well as the automated market maker used to boost liquidity.
What kind of markets are included for trading?
At the time of this publication, a contest running (#558) exists between the Major League Baseball game involving the Oakland Athletics and Detroit Tigers. Current markets include Tigers to win, Tigers to win by more than 3.5 runs, more than 7.5 runs scored in game, as well as certain player performance such as Scott Kizzmar to allow more than 5.5 hits and 2.5 earned runs. The prices of each market within the contest range from 27 to 54.
Snapshot of current market involving Oakland and Detroit:
Tradesports funding is run entirely through Paypal. While Tradesports themselves do not charge fees for deposits or withdrawals, Paypal applies standard transaction fees based on your account tier. The Tradesports website notes that additional cashier options are coming soon.
SBR encourages users that have Tradesports feedback to write in via email to email@example.com.
Sportsbook Review reported that Intrade officially closed in March of 2013. This came after a report in November 2012 that the Dublin based business exited the US market. Intrade last updated their website with a homepage statement on June 24 2014 with a statement concerning user accounts. Users with positive balances that have yet to request payment of their funds will be charged a $240 fee. Accounts with less than the $240 fee will be charged equal to the amount that will reduce the balance to 0.
Intrade hopes to liquidate all remaining customer accounts by the end of 2014.