Roblox direct listing: how to buy Roblox shares

Roblox – the US-based kids’ gaming company – went public through a direct listing in March 2021. Find out how investors and traders can open a position on Roblox shares.

How to buy Roblox shares: investing and trading

Roblox is listed in the US, meaning you can also trade Roblox shares with derivatives like CFDs. Here’s you can do it with us.

Trading (buying) Roblox shares

  1. Create or log in to your leverage trading account for CFDs
  2. Go to our trading platform
  3. Search for ‘Roblox’
  4. Choose your position size
  5. Select ‘buy’ and monitor your trade

With investing, you’ll be buying Roblox shares outright – making you a Roblox shareholder, eligible to receive dividends and voting rights if the company grants them.

But, bear in mind that you’ll need to commit the full value of the position upfront – which also caps your maximum risk at this initial outlay. As with all investments, you could get back less than you initially invested.

Trading on the other hand, means that you’re opening a speculative ‘buy’ position without having to take direct ownership of Roblox shares. This is made possible with derivatives like CFDs

You won’t get dividends or voting rights when you trade Roblox shares, but you will be able to open your position with leverage – granting you full market exposure for an initial deposit, which might help to reduce the size of your initial outlay. But, while leverage can increase your profits, it can also increase your losses – so it’s important to take steps to manage your risk.

Learn more about risk management

How to sell your Roblox shares

Selling a Roblox share investment means that you’ll be reducing your investment position. This could be to take some profit, or it could be to close your position entirely – perhaps to cut a loss if the Roblox share price had decreased to your personal maximum loss threshold.

There’s info on how to sell your Roblox shares in the boxes below

How to short sell Roblox shares

Short-selling is generally used in the context of trading – like with CFDs. That’s because these derivatives let you take a position without having to directly own Roblox shares, so you can go short without having to become a Roblox shareholder.

Just like buying with derivatives, you’ll be shorting Roblox shares with leverage when you open a position with CFDs. Remember that while this can increase your potential profits, it can also magnify your losses. To profit when going short, you’ll need the Roblox share price to fall below the price that you opened the position at – if it rises above this price and you close your position, you’ll incur a loss.

Learn more about the impact of leverage on your trades

Short selling Roblox shares

  1. Create or log in to your leverage trading account for CFDs
  2. Go to our trading platform
  3. Search for ‘Roblox’
  4. Choose your position size
  5. Select ‘sell’ and monitor your trade

What’s the difference between a direct listing and an IPO?

The main difference between a direct listing and an IPO is that in a direct listing, a company won’t have an underwriter for its stock issue. Instead, its employees and existing investors will convert their ownership stakes into shares that are listed on a stock exchange – which can be purchased by institutional and retail investors.

As a result, direct listings don’t have the same ‘safety net’ that IPOs do, because there’s no underwriter to set a target share price range. Instead, in a direct listing, share prices are completely at the mercy of market demand, which can cause increased volatility compared to going public through an IPO.

Find out more about how IPOs work.

Publication date : 2021-02-23T14:49:00+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.

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