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Why Trade IPOs
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. 4xvc.com provides you with three ways to trade IPO stocks:
- CFDs on newly listed shares
- Grey markets to trade CFDs on companies pre IPO
- The Renaissance Capital IPO ETF
Trade CFDs on IPO stocks the day they are listed
We are always adding new stocks to the 4xvc.com trading 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.
How it works?
A company’s market cap depends on the price the company sells its shares for. Pre IPO, the company will provide 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 capitalization 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 capitalization will be lower than expected, you can trade the grey market short.
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 straight away, and the fund is updated quarterly to make sure it includes all the important stocks to go public recently.
Join 4xvc.com in 3 steps and start trading
1. Create your account
2. Fund your account
3. Start trading straight away
Need more information?
See all FAQs
What is an IPO?
How is an IPO priced?
How do you short an IPO?
The IPO lock-up period typically lasts from 90 to 180 days. It is intended to prevent too many shares from flooding the market in the early days of the IPO. A high supply of shares could drive down the price of the IPO stock. As soon as the lock-up period ends, you can short an IPO. Please note that 4xvc.com reserves the rights to define what orders to accept.
Who determines the IPO share price?
