Pre-IPO Share CFDs FAQs

It is a market that allows clients to trade on the expected value of a company before and during its first day as a publicly listed company.

No.
You are trading a CFD product linked to the expected market value of the company. This CFD product does not provide clients with any ownership interest in the company, any right to acquire shares, or any participation in the IPO.

The quoted price represents the company’s expected market capitalisation rather than the price of an individual share.

Pre-IPO Share CFD prices are determined by StoneX using reasonably available information, including listing materials, company disclosures, analyst research, relevant market developments, movements in comparable listed securities, liquidity conditions, and risk management considerations.

Although shares have not yet begun trading, markets often form a view on what the company is likely to be worth once trading starts. The Pre-IPO Share CFDs allow clients to speculate on the market’s expected valuation of a company that is anticipated to complete an initial public offering (IPO).

Yes.
The CFD market may move as new information becomes available or as market expectations change.

Yes. The Pre-IPO Share CFDs remain available on a close only basis during the first day of unconditional trading.

Settlement is based on the market capitalisation implied by the official closing share price at the end of the first day of unconditional trading.

You may close a Pre-IPO Share CFD during the specified dealing hours set out in the relevant Product Market Information available on the trading platform at any time prior to the last dealing time for the Pre-IPO Share CFD. You are responsible for being aware of the last dealing time and any spread that may apply when closing a Pre-IPO Share CFD. Any remaining position will be automatically closed using the final settlement value.

No. The Pre-IPO Share CFD product is designed to expire at the end of the stock’s first day of unconditional trading.

StoneX may amend trading arrangements, suspend trading, extend expiry dates or take other actions considered necessary to maintain a fair and orderly market.

Pre-IPO Share CFDs are proprietary over-the-counter products. Different firms may use different assumptions, valuation methodologies and risk management approaches. Therefore, the expected market capitalisation used for the product may differ materially from the IPO price, the company’s actual market capitalisation once trading commences, or valuations applied by other CFD providers or market participants.

Pre-IPO Share CFDs are subject to the margin requirements set out in the relevant Product Market Information available on the trading platform and are subject to margin calls and margin close-out.

The principal risks are:

• High volatility
• Rapid valuation changes
• IPO delays
• Uncertain market sentiment
• Potential for significant losses

Yes.
Clients may open both buy and sell positions subject to applicable trading limits set out in the relevant Product Market Information available on the trading platform.