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What is the 90% tolerance and why is it there?

The 90% tolerance is a threshold we have in place for switching and selling with a monetary amount, which helps to avoid deal failures when there is a drop in the unit price. This is a common approach across platforms.

For example, if you have £1,000 in an asset, and request a sell deal of £950 (95%), if the price drops and your holding is only worth £940, then the deal cannot be executed.

With regards to why we choose to set the tolerance at 90%, it provides a buffer, so that in times of extreme market volatility, the threshold is still effective.

It is still possible to achieve a sell of between 90% and a 100% of an asset, it just needs to be instructed on a unit basis (although this will of course mean that you won’t know the exact amount transacted until after the pricing point).