Trading on IPO

What is an IPO? 

IPO is a process through which a private company transforms into a publicly traded one by issuing shares to the public, enabling them to invest in the company's growth and success. It's a pivotal moment in a company's lifecycle and involves complex financial and regulatory considerations.

Companies go public through an IPO to raise capital, provide liquidity for existing shareholders, enhance visibility and credibility, attract and retain talent, and use stock for acquisitions, among other reasons.

The IPO price is typically determined through a combination of factors, including the company's financial health, market conditions, demand from investors, and pricing strategies of underwriters and advisors.

How to trade on IPO CFDs?

You can only trade on IPOs once they are publicly listed on an exchange. When an IPO you're interested in opens for trading, place an order through your MT4. You can usually choose between market orders (buying at the current market price) or limit orders (specifying the price at which you want to buy).

Remember, trading on IPOs can be risky, and it's essential to do your research and consult with a financial advisor if needed.

Why can’t we have a certain date for the IPOs?

IPO dates are uncertain because they depend on various factors, including regulatory approvals, market conditions, and the company's readiness. These factors can change, making it challenging to pinpoint an exact date.

Can I trade pre-IPO?

Until a private company becomes publicly traded on an exchange it is not possible to trade on.