How to trade IPOs – 3 ways to trade IPO stocks with Marketsx
IPO stocks can offer some of the biggest trading opportunities on the market. Initial public offerings, or IPOs, attract a lot of attention and the IPO market is closely watched to find the next big stock.
Marketsx gives you three ways to trade IPO stocks: CFDs on newly listed shares, grey markets to trade companies pre IPO, and the Renaissance Capital IPO ETF.
Trade IPO stocks the day they are listed
We are always adding new stocks to the platform, and this includes many newly listed companies following recent IPOs.
Traders have been able to trade CFDs on many IPO stocks on the day of their market debut.
Use grey markets to trade pre IPO
Can’t wait to start trading the next big IPO? With our grey markets, you don’t have to. Grey markets allow you to take a position on a company pre IPO by speculating on their eventual market capitalisation.
A company’s market cap depends on the price the company sells its shares for. Pre IPO, the company will give a target price range for its shares, and this will often be adjusted higher or lower to reflect market demand.
If you think the company’s eventual market capitalisation will be higher than is currently expected, you can trade the grey market long.
If you think the company is being overvalued, and its market capitalisation will be lower than expected, you can trade the grey market short.
In the past our clients have been able to trade companies such as Lyft, Uber, Peloton, Saudi Aramco, and Aston Martin pre IPO with our exclusive grey markets. We’ll keep our article on the hottest upcoming IPOs in 2020 updated with information about future grey markets.
Renaissance Capital IPO ETF
The Renaissance Capital IPO ETF allows you to trade the performance of the freshest stocks listed in the US.
It only features stocks that went public in the last two years so it is a great way to capture the performance of the newest companies on the market.
The most significant IPO stocks are added to the ETF straightaway, and the fund is updated quarterly to make sure it includes all the important stocks to go public recently.