Over-the-counter derivatives are leveraged products that carry a high level of risk to your capital. Trading is not suitable for everyone and may result in you losing substantially more than your initial investment. You do not own, or have any rights to, the underlying assets. You should only trade with money you can afford to lose.

axi-logo
Loading...
Home
/
Learn to trade
/
Axi Academy
/Share Trading Fundamentals

Share Trading Fundamentals

Shares hero mobile image
Shares hero mobile image

Course overview

1. Investing in stocks vs. trading share CFDs2. What is the earnings season and how does it affect the price of shares?3. Trading the stock market: So, how does it work?4. Trading on Initial Public Offerings5. Putting your stock-trading strategy into action6. Using risk management in share trading7. Conclusion

4. Trading on Initial Public Offerings

Share trading includes initial public offerings (IPOs). When a company goes public, it opens its doors to investors for the first time, inviting them to purchase its stock. A private company may decide to go public for various reasons. Some companies want to raise capital to grow and attract talent, while others want to improve their public image, pay off debts, or monetise assets. Popular past IPOs include Arm Holdings, Reddit, and Instacart. Read more about IPO trading.

 

How to trade IPO
 

Trading an IPO is a process similar to trading any other asset. With Axi, you can get exposure to IPO shares as soon as a company is listed on a specific exchange and prices from the exchange become available to our liquidity providers.

 

  1. Login to your live MT4 trading account (sign up with Axi if you don’t have one).
     
  2. Navigate to Market Watch, right-click and select ‘show all’. Search for the company going public.
     
  3. Choose your position and size and go long or short on share prices. Don’t forget to set risk management tools like a stop-loss and take-profit order.
     

Quiz

1/1

Why do companies go public?

Select more than one answer

A) To raise capital.

B) To improve their public image.

C) To pay off debts.

D) All of the above.

Previous chapterNext chapter