When trading on Swyftx, you may come across certain assets that show a 'low liquidity' warning. You will see this warning in the order panel when trading assets with low liquidity. Assets with low liquidity tend to incur greater slippage be exposed to higher spreads.
Some assets that have low liquidity may also have limited functionality. Read more about limited functionality assets.
To find out more about slippage, read our Swyftx Learn article What is Slippage in Crypto?
The order size for low liquidity assets is limited to a maximum of $3,000 AUD equivalent.
It is possible to place multiple orders for low liquidity assets within the maximum order size threshold. However, doing so can result in inflated buy prices and decreased sell prices, because you could be buying significant amounts of the available liquidity or contributing to an oversupply of a token that people are trying to sell.
Guidelines for trading low liquidity assets
When buying a low liquidity asset, enter the amount of base currency you want to spend, not the amount of the asset you want to buy.
When selling a low liquidity asset, enter the amount of the asset you want to sell, not the amount of base currency you want to receive in return.
Read more about base currency.