1 pointTrade ByteDance (TikTok) ahead of its IPO, with the IG 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. Where to find the grey market on the platform You can find this grey market on the platform by selecting Popular Markets> ByteDance (TikTok) IPO Market Cap (US$Bn) Let me know if you have any questions about this!
1 pointDuring the US Thanksgiving holiday, we will be making some changes to our usual trading hours. These adjustments will take place between Wednesday 27 November and Friday 29 November 2019, after which we’ll go back to normal trading hours. (All times below are GMT). Wednesday 27 November Usual closing times on US markets, US equities post-market open as normal. Thursday 28 November US equity markets will be closed. US index futures close early at 6pm. We will make an out-of-hours price on Wall Street, US 500 and US Tech 100 until futures re-open at 11pm. The Volatility Index closes early at 4.30pm. US Crude closes at 6pm, Brent Crude closes at 6.30pm. The US 30-Day Fed Funds Rate and the US Dollar Basket close at 6pm. Metals, including Gold and Silver, close at 6pm. US soft commodities will be closed. London Sugar No.5 closes early at 5pm. Friday 29 November US equity markets will close early at 6pm. There will be no pre or post-market trading. US index futures and the Volatility Index will close early at 6.15pm. We will make an out-of-hours price on Wall Street, US 500 and US Tech 100 until 9pm. US Crude closes at 6.45pm, Brent Crude closes at 7pm. The US 30-Day Fed Funds Rate and the US Dollar Basket close at 6.15pm. Metals, including Gold and Silver, close at 6.45pm. Cotton opens late at 1pm. Chicago Wheat opens late at 2.30pm. US soft commodities (except New York No.11 Sugar) will close early at 6pm. Lumber trades 3-6pm, Live Cattle trades 2-6.15pm. The futures desk and all 24-hour indices close at 9pm, FX closes at 10pm. Let me know if you need clarification on this.
1 pointWe're happy to announce that both Bollinger %B and Bollinger Bandwidth are now available to use on the web platform and mobile app. Bollinger %B Bollinger %B indicator helps you work out where price is in relation to the upper and lower Bollinger Bands. This shows a reading of 1 if the price is trading at the upper band, or 0 if it's at the lower band. Bollinger %B allows you to take readings of divergences that often precede market reversals: A bearish divergence occurs when there are lower highs in %B during an uptrend in price (higher highs) A bullish divergence occurs when there are higher lows in %B during a downtrend in price (lower lows) Bollinger Bandwidth The Bollinger Bandwidth gives a reading on the distance between the upper and lower Bollinger Bands: A low reading could be a sign that volatility is about to rise. Low volatility is often seen as a precursor to a spike in price. You can use the tool in a highly trending market. A fall in volatility is often seen when markets are consolidating, or momentum is building for the next move. A reversal in the direction of the bandwidth can be a sign of a market reversal, as it could mean a recent surge or slump in price is losing momentum