The Fractional Trading feature allows users to buy a fraction of an NFT instead of the whole piece. Fractional trading is a relatively new trend that fiat brokers started to offer, after the shares of large companies had begun to cost more than a thousand dollars. Initially, they were designed for small investors who wanted to buy a stock but did not have enough capital to buy a whole share. So, for example, Amazon’s stock was worth approximately $3,100 at the time of writing. Not all retail investors can afford this. Therefore, investors can use fractional trading, thus receiving a share of the asset.
The cryptocurrency market uses the same practice since some NFTs (like some stocks) cost hundreds of thousands of dollars, making them difficult to buy. Therefore, the same practice started being used for NFTs. This service offers investors the chance to buy a fraction of an NFT asset, which can be resold in the future. This is convenient if you do not have a lot of capital with which to buy expensive NFTs but still want to have a share in the ownership of an NFT.
The NFT STARS platform provides its users with a unique opportunity to own an NFT asset without having to purchase the entire asset. Bidders can buy a fraction of an NFT, gaining ownership rights and all of the NFT’s functions and features in proportion to their share of ownership.
Reasons to use Fractional Trading
Price detection: NFT fractioning helps to determine how the market will value an NFT, by selling only 20% of the total asset, for example.
Liquidity: Splitting an NFT provides the owner with better liquidity.
Financial instrument: F-NFTs (Fractional NFTs) were introduced for ease of use. An investor can easily buy and sell shares of an NFT, making a profit on it without owning the whole NFT.