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 Bank calculates the settlement price based on the official closing price of stock on after first day of trading, as reported by Bloomberg.