How to buy, sell and short Churchill Capital IV or Lucid Motors shares

Lucid Motors is going public through a reverse takeover, facilitated by the special purpose acquisition company (SPAC) Churchill Capital IV. Find out how to buy, sell and short Churchill Capital IV and Lucid Motors shares.

How to buy, sell and short Churchill Capital IV shares

Churchill Capital IV is already a publicly listed company. This means that you can invest in the company, or trade its shares with derivatives like CFDs, before the acquisition of Lucid Motors is complete.

Once the two companies are merged, your Churchill Capital IV shares will automatically convert to Lucid Motors shares.

Buying Churchill Capital IV shares: investing or trading

Trading (buying) Churchill Capital IV shares

  1. Create or log in to your trading account for CFDs and go to our trading platform
  2. Search for ‘Churchill Capital IV’
  3. Select ‘buy’ in the deal ticket
  4. Choose your position size and take steps to manage your risk
  5. Open and monitor your trade

Investing means that you’ll take direct ownership of Churchill Capital IV shares – making you a company shareholder, eligible to receive dividends or voting rights if the company grants them.

Trading means that you’re taking a speculative position on the Churchill Capital IV share price rising or falling with CFDs. These are leveraged derivates, which means that they won’t grant you direct ownership of the shares, but they will enable you to get full market exposure for an initial deposit – known as margin.

It’s important that you take steps to manage your risk – especially when trading with leverage, which can increase both your profits and your losses.

Learn more about risk management

Selling Churchill Capital IV shares: investing or trading

Shorting Churchill Capital IV shares

  1. Create or log in to your trading account for CFDs and go to our trading platform
  2. Search for ‘Churchill Capital IV’
  3. Select ‘sell’ in the deal ticket
  4. Choose your position size and take steps to manage your risk
  5. Open and monitor your trade

Selling a share investment means that you’ll be reducing or exiting your investment position. This’ll reduce your total ownership stake in the company, and you’ll receive fewer dividends or voting rights if the company grants them. You’d sell your share investment to either realise a gain, or to cut a loss.

Shorting Churchill Capital IV shares means that you’re taking a speculative position on the share price falling in value – which you can do with CFDs. You’d do this if your outlook for the company was weak, perhaps because you don’t like the look of Lucid Motors and think the share price will fall following the acquisition.

How to buy, sell and short Lucid Motors shares

Once Churchill Capital IV has acquired Lucid Motors – anticipated to take place in the second quarter (Q2) 2021 – you’ll be able to trade Lucid Motors shares. That’s because any Churchill Capital IV shares will be automatically converted into Lucid Motors shares, which will be able to be bought and sold in the underlying market.

How to buy Lucid Motors shares: investing and trading

Trading (buying) Lucid Motors shares

  1. Create or log in to your trading account for CFDs and go to our trading platform
  2. Search for ‘Lucid Motors’
  3. Select ‘buy’ in the deal ticket
  4. Choose your position size and take steps to manage your risk
  5. Open and monitor your trade

Just like we explained earlier in the article, investing means that you’ll become a Lucid Motors shareholder – eligible to receive dividends and voting rights if the company grants them. Trading means that you’re taking a speculative position on the Lucid Motors share price, without owning the shares directly.

How to sell Lucid Motors shares: investing and trading

Shorting Lucid Motors shares

  1. Create or log in to your trading account for CFDs and go to our trading platform
  2. Search for ‘Lucid Motors’
  3. Select ‘sell’ in the deal ticket
  4. Choose your position size and take steps to manage your risk
  5. Open and monitor your trade

Let’s suppose that Lucid Motors has been public for a few weeks or months. Maybe the company has done well and you want to take some profits from your investment position. Or, perhaps the share price has fallen and you want to short the company to profit from continued downwards movements.

The steps above show you how to sell your Lucid Motors share investment and how to short Lucid Motors shares.

How to analyse the Lucid Motors share price

Since it’s going public through a SPAC, the market for Lucid Motors shares might be volatile for a time after the acquisition is completed. As a result, it’s important to use both technical and fundamental analysis before opening a position on Lucid Motors shares.

  • Technical analysis is concerned with chart patterns, technical indicators and historical price action
  • Fundamental analysis is based on the fundamentals of a company, including its net revenue or profit and loss statements

Learn more about analysis with an IG Academy course

Publication date : 2021-03-03T14:03:45+0000

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

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