Each athlete on Mojo has a Share Price that represents the public’s latest statistical expectation for a player’s entire career. Expectations — and therefore share prices — constantly change, based on factors like performance, news, and market sentiment.
What if you think a player’s share price is more likely to go down than up? Or what if you just don’t particularly like a player and it sounds fun to root against them?
On Mojo, you can profit when an athlete’s share price goes down when you Short that athlete’s stock!
Shorting the real stock market is complicated and risky, but we made shorting on Mojo simple and dramatically reduced the risk.
When you trade short, you're expecting that a player will underperform their market value. You think they're overrated by the crowd! As the price goes down, your gains go up. Your maximum upside is double your money and your losses are capped at your original purchase amount.
The short answer (pun intended, the author is a dad) is: for fun! Everything on Mojo is supposed to be fun. Mojo should NOT be where you invest your retirement savings.
The longer answer is that to offer the first true sports stock market, with stock prices that go up and down just like real stocks, Mojo needs shorting. Without shorting, how would the market (that’s you guys!) signal that a player’s share price is too high? For example, if Zach Wilson’s IPO price were $200 (that’s WAY more than Tom Brady’s!) then no one would ever trade his shares. Mojo relies on the wisdom of the crowd to signal that a share price is too low, but we also rely on the public to signal that a price is too high.
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