How Pricing and Spreads Work at EasyEquities

Keeping up with investing terms? We're here to break down spreads, pricing, and transaction limits on EasyEquities in simple terms. Let's get started!

• Spread: This is the gap between the highest price someone is willing to pay for a share (buy price) and the lowest price someone is willing to sell it for (sell price). Think of it as the difference between the price a store buys a product for and the price it sells it for.
  
  
• Pricing: The price of a share depends on how many people want to buy it (demand) and how many people want to sell it (supply). If more people want to buy, the price goes up. If more want to sell, the price goes down.
  

• Liquidity: This term describes how easily you can buy or sell a share without changing its price much. A share is "liquid" if you can buy or sell a lot of it quickly and without affecting the price too much. If it's "illiquid," there aren't many buyers or sellers, so large trades can change the price a lot.

Several factors influence the width of spreads. During uncertain times, spreads tend to get wider. On the other hand, higher trading activity usually makes spreads narrower. Smaller or less traded companies often have wider spreads because there are fewer buyers and sellers.

• High Liquidity: More shares available, higher limits, and smaller spreads.
  
  
• Low Liquidity: Fewer shares available, lower limits, and larger spreads. These limits ensure that EasyEquities can match your buy or sell orders with what's available on the market.

These limits ensure that EasyEquities can match your buy or sell orders with what's available on the market.

1. Always check the transaction limits for each share before you trade.
2. To control the price you pay, use limit orders. This way, you set the maximum price you’re willing to buy at or the minimum price you’re willing to sell at.
3. Keep an eye on any changes to transaction limits and liquidity profiles.

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