Tel Aviv Stock Exchange (Flash 90 / Adam Schuldman)
The Stock Exchange announced this morning (Monday) that starting March 1, which will apply tomorrow, the general public will be able to send buy and sell orders during continuous trading in significantly lower amounts compared to those that exist today.
The conditions for sending orders as of today are, in shares included in the Tel Aviv-35 index in the order size of at least NIS 5,000, and starting tomorrow the amount has dropped to only NIS 500. In the rest of the shares, the necessary order size of NIS 2,000 will be reduced to NIS 500. .
The minimum size of an order is a parameter that determines, for each security separately, the smallest amount that can be included in one deposit in the security, which is distributed for trading on the stock exchange, at the continuous trading stage. When the quantity of securities contained in an order submitted at the continuous trading stage is smaller than the minimum size of an order, the order is considered invalid and is therefore rejected.
The move to reduce the minimum order size during continuous trading will contribute to increasing the involvement of private investors from the general public in stock market trading, and especially to the younger investor audience who do not hold large amounts for investment but are looking for more minimal options. For the young investor audience, this is an opportunity to jump on the bandwagon in light of the possibility of participating in trading even through significant “small” orders, at all stages of trading. This will increase the investment options and flexibility of trading for private investors, who naturally cannot perform activities in high amounts frequently.
More in-
This change is another step in the implementation of the TASE’s strategy to open up the capital market and make it accessible to the general public. In the last two years, close to 280,000 new trading accounts have been opened on the stock exchange, which highlights the need to remove barriers and increase trading opportunities for the public.
Reducing the size of the order is also expected to be better with index trackers due to the fact that reducing the minimum order size will allow full and better coverage through smaller stock baskets, thus reducing their exposure to market risks.
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