+50p sell offer limit



  • Hi all,

    I was wondering why has FI imposed a limit on the max sell offer only 50p above buy price.

    Surely, from the perspective of someone not necessarily keen to constantly look at the market, the ability to just put a player on offer at whatever high price he wants for it and then hope for the best (😅) should be quite a convenient feature.

    I appreciate why they recently imposed a lower limit but I can’t see any detrimental effects on the market from increasing the higher limit.

    But maybe I am overlooking something...



  • It was 10p above and they changed to 50p.

    I agree with your point, I think FI are fearful of a player with little offers could look really overpriced. Say I had a 0.50 player and set a sell offer at 10.00. If there was no other offers, the 0.50 player would have a buy now price of 10.00.

    This limit also allows FI to mint new shares if buys exceed offers so more profitable for them.



  • @Highfields96 said in +50p sell offer limit:

    It was 10p above and they changed to 50p.

    I agree with your point, I think FI are fearful of a player with little offers could look really overpriced. Say I had a 0.50 player and set a sell offer at 10.00. If there was no other offers, the 0.50 player would have a buy now price of 10.00.

    This limit also allows FI to mint new shares if buys exceed offers so more profitable for them.

    Their buy price would only show as 10 quid if that is their historical high though, if it's not then it would show as the value that fi would be issuing new shares at, they've intimated about the issuance curve but havent given any actual details about it



  • @Kozo-Kira I see your point and don't know why. Could be due to the issuance curve (FI releasing more details on this at some point, but essentially I think it will give a bit more info/transparency as to how FI mint new shares) but otherwise, I can't see an obvious reason why.



  • @Ddr Yep, need more information on the issuance curve which I mentioned at the end of my message.



  • @Ddr @Highfields96 thought I'd give replying a stab to try and be helpful, but you both beat me to it as I was typing. Glad I might be roughly right though!



  • @Kozo-Kira

    FI want us to trade and pay commission.

    Not so long ago many were predicting Sancho would be £30+ in a couple of years. If you could set any sell order limit you could have bought Sancho in bulk at £10 or so, set a sell price of £25 and logged off for 2 years. Win lots of dividends and hope that he does hit £25 and sells. Zero effort, minimal commission.



  • @Mintyfresh @Martyn-B raises a good point. They want active users for commission.

    Probably a variety of reasons in truth.



  • @Martyn-B that makes sense, sadly.

    Although one would expect that functionality to be implemented at some point.

    Meaning, if you want to ‘simulate’ a market then also holding forever on your shares without having to worry too much should be recognized as a legitimate behavior... 🤷‍♂️


Log in to reply