Grey market definition

What is a 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 IPO (total shares in issue x price).

If you think the estimated value of the company is over- or under-priced, or if news stories surrounding the business creates additional volatility, a grey market enables you to take advantage before the shares are released publically on the stock exchange.

How is a trade on an IG grey market settled?

Settlement of a trade is calculated based on the official closing price of the relevant company on the first day of trading, as reported by Bloomberg.

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