Cryptocurrency exchange Coinbase Global Inc (NASDAQ:COIN) made its debut on Wednesday, making it a focus of discussion on Benzinga's "Power Hour" YouTube show.
The show's host Luke Jacobi spoke with IPO Warriors' Matt Hammond, who said, "I'm setting a limit order just above the indication price" for Coinbase.
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Hammond added that he's adjusting his limit order as the reference price for Coinbase goes higher.
Related Link: Coinbase Shares Open At $381, $100B Valuation On Debut
The biggest mistake he made when he started trading IPOs was placing market orders after trading became available, Hammond said. Setting a limit order before the company goes live creates the opportunity to buy shares right away, he added.
Jacobi explained that the market maker tries to figure out a fair price for the stock to start trading by determining the prices where the buyers and sellers of the stock are lined up.
Related content: Benzinga's Full Upcoming and Recent IPOs Calendar
The typical time time-slot "these blockbuster IPOs debut," said Hammond, "is 12:30 p.m. EST to 1:30 p.m. EST."
The Nasdaq set the reference price for Coinbase at $250 per share. The stock opened Wednesday afternoon at $381 and rose to a high of $410 before pulling back slightly, according to a Benzinga article by Shanthi Rexaline, which also stated that at the intraday peak of $410, Coinbase's valuation works out to $107.13 billion.
(Image by SnapLaunch from Pixabay)