Relevant to
✅ App ✅ Website ✅ Capitec Widget
At EasyEquities, our mission is to make investing simple, accessible, and transparent. To ensure a smooth trading experience for all users, we apply transaction limits to some shares on our platform. Here’s why:
1. Liquidity Considerations
Each share on the stock market has a different level of liquidity. Liquidity refers to how easily a share can be bought or sold without significantly affecting its price.
As an intermediary, EasyEquities matches the buy and sell orders of our investors with the liquidity available on the underlying exchange. The transaction limits reflect this liquidity to ensure we can always fulfill your trades efficiently.
2. Why Limits Help
Protects Market Stability: By capping transaction sizes, we avoid placing undue pressure on a share’s price, especially for shares with low liquidity.
Ensures Fair Access: Limits allow a wider pool of investors to participate in trading these shares without disruption.
3. How It Works
Each instrument’s trading limit is based on a detailed analysis of market liquidity. This ensures that limits remain relevant and adaptive to market conditions.
You can see the specific transaction limit for each share directly on its trade ticket on the EasyEquities platform.
4. What If You Want to Trade More?
You’re welcome to perform multiple transactions to achieve your desired position size, provided the liquidity allows.
For larger trades that exceed platform limits, our trading desk can assist you. Please note that additional costs may apply for this service. You can contact the team at [email protected] or 010 141 2202 during business hours (Monday to Friday, 09:05 AM to 4:40 PM).
5. Understanding Illiquid Shares
Shares with low liquidity often have wider price spreads (the difference between buying and selling prices). Transaction limits on these shares are lower to protect investors from unfavorable price changes.
To learn more about liquidity and how it impacts investing, visit our Glossary.
6. Dynamic Limits for Dynamic Markets
As market conditions and liquidity profiles evolve, we may adjust transaction limits. This ensures we stay aligned with our goal of providing a fair and stable trading environment.