New format for limit selling of shares

As a lot of you already know, Freetrade has a limit per transaction of £25k.

This isn’t currently an issue for the shares that Freetrade offer, as currently the most expensive share on the app is Amazon (around 3k/share). However there are shares on the market already worth more than 25k (Berkshire Hathaway anyone?)

With the volatility of the market increasing more week after week, we could see some stocks in the Freetrade app on the receiving end of a short squeeze. If this were to happen Freetrade users would be better off using a limit sell to guarantee their price point, rather than risking being on the bad end of a large bid/ask spread.

How high can a short squeeze push up the price of a stock? It’s theoretically limitless. A 25k limit may look woefully small when stocks could be trading at much higher prices.

Freetrade is currently reviewing this transaction limit, which is fantastic! However the new limit might not be enough either. As I mentioned a short squeeze can push prices up to limitless amounts. So any limit would be restrictive of Freetrade users to access the ‘free market’.


We need to change the format of limit selling. With this change of format we don’t even need to increase the transaction limit.

Current Limit sell format:

  1. Set price per share (current max 25k. This is where we become greatly restricted, as the limit should only apply to a transaction, not a share price!)
  2. How much of a share, or how many shares would you like to sell? (this is all restricted to the limit of 25k/share.)

EXAMPLE: I have 1 share, It’s worth £1 million for whatever reason. I go to my limit sell, the best I can get is £25k! Or sell 0.1 of my share for £2.5k. Pretty disappointing if you ask me.

My proposed new format:

  1. Set price of this transaction (limit of 25k, or new limit when it is introduced)
  2. how much of a share, or how many shares would you like to sell for this price?

EXAMPLE: I have 1 share, It’s worth £1 million for whatever reason. I go to my limit sell and set the price of this transaction to it’s maximum (currently 25k). I then decide to sell .025 of my share for this price. This way my share retains its full value and I’m guaranteed I get the right price for it. Without having to increase the limit per transaction.!

And that’s it! A simple fix would allow us to set the transaction limit and then decide how much of a share to sell for that price. We can work within the current limit per transaction and still trade at the share’s full worth. Sounds like a win win to me!

Any feedback or comments are welcomed, I’m here to learn too!

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