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Robinhood Grey market


CharlotteIG

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Robinhood Grey market

By taking a position on a grey market, you’re taking a position on a company’s potential market cap ahead of its initial public offering (IPO). The price of a grey market is a prediction of what the company’s total market capitalisation will be at the end of its first trading day.

If you think the estimated value of the company is over- or under-priced, a grey market enables you to take advantage of this disparity before the shares are released publicly on the stock exchange.


Why are traders interested in grey market stocks?
Traders are interested in grey market stocks because it can be a way of taking advantage of movements in the company’s share price before it has actually listed.

Also, any activity is usually taken as an indicator for the direction the stock price will take once it has listed. The pre-market price can be used to gauge the demand for the shares.
How to trade grey market stocks.

Grey market stocks are traded over-the-counter (OTC), which means that they are not offered by a stock exchange, but only by brokers and trading providers.

By taking a position on a grey market stock, you’re taking a position on a company’s potential market capitalisation ahead of its IPO. If you think that the company will be worth more than the price indicated, you can buy the market. If you think that the price is an overvaluation, you can sell.


When it comes to settling your trade, this can only be done once official trading of the share has begun. IG calculates the settlement price based on the official closing price of stock on after first day of trading, as reported by Bloomberg.

 

We're LIVE with a grey market on the forthcoming Robinhood Grey market.

The market Settles basis the market capitalisation of Robinhood at the official close of the primary exchange on the 1st day of unconditional trading excluding any outstanding and optional shares. All OPEN trades will be voided if there is no floatation by 31st Dec 2023.

Float date is yet to be announced.

Market info:

Trading hours: Around the clock : bar 2115 Fri - 0800 Sat 

Deposit factor: 25%

Lot size: $10

Min bet: £1 or $1 for CFD

Max online size per clip: £50 (at this early stage)

 

We are not offering working orders or non-guaranteed stops/ limits.

CR stops are available with a stop distance of 5pts. Max size of £50 (for now) at any one level with 1 pt. spacings. CR premium has been set as 0.5pts.

 

The market can found in the Popular Markets watchlist on Puredeal, WTP and mobile apps and the specific IPO Grey markets watchlist if available. It will not appear in the WTP search function.

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This market is available to clients in the UK, Australia, and most European sites (France, Spain and Portugal excluded). It is not available for clients based in Dubai, Japan, and Singapore.

3 Comments


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To clarify - does the position have to be settled by the close of business on the first day of official dealings or does it simply become an indefinite long or short daily-funded bet on the now-listed entity?

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So how does RH makes money ? anyhow should do well given market frenzy is at record 

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