IPO shares are not marginable for at least 30 days following pricing.


IPO positions must be fully paid for with cash if held overnight

They cannot be used as margin collateral during this period


Day trading margin requirements may vary on the first day of trading

Positions that do not meet IPO margin requirements may be reduced after market close

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Currently, TradeZero America clients cannot participate in new issues.


Only limit orders are accepted on the first day an IPO trades.

After the first day of trading market orders are accepted during regular trading hours (9:30 AM – 4 PM ET).


No. TradeZero does not participate in IPOs or new issue offerings.


You may trade the stock once it begins trading in the secondary market

To hold shares of an IPO overnight, regulations governing IPOs state that new issues are non-marginable for a minimum of 30 days following pricing. 

This means that IPO shares must be paid for using cash or cash available to borrow*.


For day trading purposes, margin requirements are determined by the clearing house the day of the IPO.

*TradeZero America risk department may reduce IPO positions after regular market hours (4 PM – 8 PM ET) that violate IPO margin rules.

An Initial Public Offering (IPO) is when a company offers its shares to the public for the first time.

Shares are sold to the public through an underwriter

The underwriter determines the offering price

Once completed, the stock begins trading on a public exchange

The IPO price is set before the stock begins trading

After listing, the stock trades in the secondary market, where prices may change based on supply and demand

No. Only limit orders are accepted on the first day an IPO begins trading.


Market orders are not permitted on IPO day

After the first day, market orders are allowed during regular market hours (9:30 AM – 4:00 PM ET)

If you are unsure whether an order is marketable, you can contact trade support for assistance

IPOs

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Can I place market orders when trading an initial public offering (IPO)?

Can I trade IPOs?

What are the margin requirements for an initial public offering (IPO)?

What is an Initial Public Offering (IPO)?

Why can’t I place a market order on an IPO?