Step 1 - PROTRADE sets the team prices
PROTRADE sets a team's price equal to our fantasy projections for the upcoming season.
If the SF Giants are projected to earn 121 fantasy points during the season, their price will be set to $121.
Step 2 - Traders buy and sell teams
Traders buy teams they think will go up in price and short teams they think will go down in price.
For example, the SF Giants are priced at $121. TraderMike thinks the Giants will earn 145 fantasy points this season and the Giants are undervalued. TraderMike buys 50 shares of the Giants.
Step 3 - Prices move up and down based on buy/sell pressure
The more a team is bought, the more their price goes up. The more they are sold, the more their price falls. As the season moves on, traders are influenced by the teams' performances to date.
For example, the SF Giants miss the playoffs after earning 81 fantasy points and are done for the rest of the season. TraderMike sold his 50 shares - the SF Giants won't earn more than $81 this season (and TraderMike purchased him at $121).
Step 4 - The season ends with Earnings Day
Once the season ends, PROTRADE sets team prices equal to the number of fantasy points earned. This event is called Earnings Day.
For example, the SF Giants price is set to $81 as they earned only 81 fantasy points during the season. Because the market is efficient, the Giants' price was already trading at $81 in anticipation of Earnings Day. By setting the price equal to fantasy points earned, market prices are tied to a team's actual performance, rather than popularity.
What is a sports stock market?
Our sports stock market is a place to buy and sell shares of your favorite teams and players much like you buy shares of companies on the financial markets - except it's free and there's no risk.
What are PROTRADE Dollars (PT$)?
PROTRADE Dollars (PT$) are fake money that make up the currency you trade in on the PROTRADE market. Upon registration, every trader is given $5,000 PROTRADE Dollars (PT$) to start trading with (for free). Traders can then use their PROTRADE Dollars (PT$) to cash out for Rewards (cool prizes). For more on this,
What are Rewards?
How much does it cost to play?
Nothing - there is no charge. PROTRADE makes money from selling advertising and distributing our content to other sites.
How are market prices set?
PROTRADE sets the price when a team or player first "IPOs" on the market. Then thousands of people trading create buy/sell pressure to drive your team's or player's stocks up or down. Once the season ends, PROTRADE then sets each team's or player's price equal to the number of fantasy points he actually earned.
What is an IPO?
An IPO is an Initial Public Offering -- the first shares made available for sale on the market.
What are fantasy points or fantasy earnings?
Fantasy earnings equal the number of points a team or player earns throughout the season, using a traditional fantasy scoring system. Click here to view our scoring system.
