Trading SpaceX with Pepperstone: 4 things to know
With SpaceX set to possibly be the largest IPO listing in history, traders are already keen to learn how they can gain exposure.
Sponsored by Pepperstone. To learn more about trading CFDs, visit the Pepperstone website today. Trading CFDs/FX carries risk and is not suitable for everyone. Refer to our PDS and TMD. Pepperstone Group Limited, AFSL 414530.
SpaceX is set to launch its public offering any day now. Initial buzz posits that it may be the largest IPO offering in history, with the company targeting a raise of up to $75 billion.
So what does that mean for CFD traders?
There are a few considerations across opportunity and risk. We're taking a look at some of the key things to know before the public offering begins.
Trade with Pepperstone
CFD Service. Your capital is at risk.
1. Pepperstone members have pre-IPO CFD access
Because CFDs offer the ability to take a position on the pricing of an asset rather than on the asset itself, trading on pre-IPO CFDs has begun.
You're able to trade through Pepperstone on a variety of platforms. The pre-IPO SpaceX CFD (SPCX.US-PERP) is now live and available to trade 24/7 on MT5, cTrader, TradingView and the Pepperstone platform.
You can find out more about Pepperstone's trading platforms right here on Finder.
This sort of access can allow you to be among the first to have continuous exposure to SpaceX. You can read more about the impending IPO offering on the Pepperstone site, too.
Of course, it's important to note that there is still risk attached. Normal CFD trading considerations still apply -- we'll take a closer look at these in a moment.
2. It offers exposure to a range of tech
SpaceX has arguably garnered most of its fame on the basis of being a space-oriented company. After all, it's right here in the name!
Rocket launches, hi-tech facilities and grand statements from Elon Musk about tech utopianism and the colonisation of Mars have kept the company in the spotlight.
There's no question that although space may not carry the same whizz-bang factor that it did in the 1960s and 1970s, it's still a powerful draw for many.
But there are other elements working under the hood, too.
SpaceX also has significant investment in telecommunications, via Starlink.
Perhaps most importantly, the S-1 filing for the IPO reveals that one of the company's big focuses is actually AI.
AI has attracted significant trader interest in recent years, both within and outside the CFD community.
Accordingly, SpaceX may present an opportunity for exposure for traders on a number of fronts, albeit with the attendant risk.
Trading with Pepperstone
With Pepperstone, you're able to trade across a range of markets and platforms, while also getting access to a range of educational resources.
🏫Learn to trade and upskill
Learn the fundamentals of trading CFDs and stay up to date on the latest developments.
📈A broad choice of markets
Choose from more than 1,350+ CFD instruments to complement your portfolio.
💸Competitive pricing
Standard spreads from 0.02 on oil CFDs and 0.05 on gold CFDs
BTC/USD spreads from $15 and ETH/USD from $2.
⏰Uninterrupted 24/7 trading^
No weekend platform downtime or associated price gaps.
🪙14 new crypto CFD pairs
Including Tron, Pepe, Bonk and more.
📞Locally-based support
Get access to help 24/7, whether online or over the phone.
Get started with Pepperstone
CFD Service. Your capital is at risk.
3. Risk must be weighed carefully
CFDs are an inherently risky trading prospect; we've written about the importance of managing it as a trader here on Finder.
SpaceX is no exception. Although the pre-IPO SpaceX CFD (SPCX.US-PERP) via Pepperstone presents an opportunity for investors, it's also important to be aware of some of the key risks.
- Over-valuation: Although the public offering of SpaceX has been highly touted in the press, there is still a possibility of over-valuation. This may contribute to pricing volatility after the initial release.
- Long-term profitability: SpaceX offers a number of intriguing technological prospects and posts considerable revenue -- but it also loses an estimated $5 billion a year.
- Market volatility: Wider world events must always be factored in when considering risk. Fuel pricing, international relations and more can all play a significant role in market movements, irrespective of their category.
- Musk himself: Elon Musk is a controversial figure for numerous reasons. His comments on platforms like X/Twitter have been suggested to have had both positive and negative influence on the value of numerous commodities.
However, there are ways to mitigate the risk as a trader.
Pepperstone also offers stop-loss tools. Broadly speaking, traders will use tools like this to set a specific price level that indicates the maximum loss they would be willing to accept.
If this occurs, the stop-loss will attempt to exit a trade before it gets worse. However, it's important to note that stop-loss orders are not guaranteed to be filled at the exact price or level attached to the open position. It's still dependent on market conditions, liquidity and the usual factors affecting any trade.
If loss still occurs, this is known as "slippage".
You can also read more about risk management and trading during volatile periods here on Finder.
4. You need to decide if it fits in with your trading plan
One of the key things to understand about trading is that not everyone trades for the same reason. People have wildly differing goals, which affects their comfort levels around risk.
For example, a person trading as a hobby with disposable income may be more comfortable with risk than someone who is actively trying to build savings for early retirement.
Tech companies like SpaceX also tend to attract enthusiasts who have an interest in the underlying technology or futurist ideals. This can be personally interesting, but whether it's aligned with your overall goals is another matter.
Leveraging features like Pepperstone's analytical tools and educational resources can also help you make more informed decisions, both in the short and long term.
You can read more about putting together a CFD trading plan right here on Finder.
Learn more about trading with Pepperstone today
Pepperstone does not require a minimum opening deposit. Commissions vary according to the asset being traded but start at $5 or 0.07% on AU Share CFDs or $3.50 per 1 lot on FX.
