EasyEquities is committed to ensuring fair pricing and execution of trades, even during periods of high market volatility. The platform employs several mechanisms to maintain transparency and protect investors:
1. Real-Time Market Prices
EasyEquities provides real-time market prices, enabling investors to make informed decisions based on current data. This transparency ensures that users are aware of the prevailing market conditions when placing trades.
2. Execution at Prevailing Market Prices
Trades on EasyEquities are executed at the prevailing market price on the relevant recognized exchange, regardless of any quoted price displayed at the time of order placement. This practice ensures that all trades reflect the actual market value at the moment of execution, maintaining fairness for all participants.
3. Volatility Auctions
During periods of high market volatility, certain shares may enter volatility auctions. These auctions temporarily halt trading for specific securities to prevent extreme price fluctuations and allow the market to stabilize. This mechanism protects investors from executing trades at unfavorable prices during turbulent market conditions.
4. Compliance with Competition Laws
In South Africa, the Competition Act 89 of 1998 regulates fair competition practices, prohibiting activities such as price-fixing and market manipulation. EasyEquities adheres to these regulations, ensuring that all trading activities on its platform are conducted fairly and transparently, without any anti-competitive behavior.
5. Order Types and Execution Policies
EasyEquities offers various order types, including limit orders, which allow investors to set specific price levels for buying or selling securities. This feature provides price protection, ensuring that trades are executed only at the predetermined price or better. However, during volatile markets, there is a possibility that limit orders may not be executed if the market price does not reach the specified level.
6. Investor Education and Resources
EasyEquities is dedicated to educating its users about market dynamics and the implications of volatility. The platform offers resources and support to help investors understand how pricing and trade executions work, enabling them to make informed decisions even during unpredictable market conditions.
Conclusion
EasyEquities employs a combination of real-time pricing, adherence to regulatory standards, and investor education to ensure fair pricing and execution of trades, particularly during periods of high market volatility. By implementing mechanisms like volatility auctions and offering various order types, the platform strives to protect investors and maintain market integrity.