Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store


Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

72.12% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

Grey market

Grey market

What is a grey market?

A grey market (or gray market) is an unregulated and unofficial market where a trader can buy or sell financial securities not currently available on official markets. This usually occurs when a company’s stock is not yet listed on the stock market through an Initial Public Offering (IPO). Another scenario is when a stock or other asset has been suspended from official trading.

Grey market explained

On the grey market, financial securities are always traded through over-the-counter (OTC) transactions. This means that they are not offered by any exchange but only by brokers or other trading providers. A good example is buying stocks before they are even issued by the company during the IPO. In fact, these are not real stocks but something like unofficial forwards on the stocks. In other words, a trader evaluates a company and makes a bid if its IPO stock price will be over- or underpriced.

Grey market premium

The Grey Market Premium (GMP) is the price at which a stock is being traded on the grey market. It is based on market sentiment. If demand is high and supply is low, the GMP is high. Otherwise, if demand is low and supply is high, the premium is low. Here’s an example:

Let’s assume that the issue price of the stock X is $100 and the GMP is $200. This means that traders are ready to buy stock X for $300 ($100 + $200). Profits and losses now depend on whether a stock is listed at the GMP price or not. If the stock’s closing price on the first day of trading is higher than the price paid before the IPO, the trader makes a profit. If the price after the IPO is low, the trader takes a loss.

Grey market vs. black market

Since the grey market is unofficial, it is not regulated by third-party businesses such as authorities. Also, there is no official platform, and all trading takes place among a limited group of people. All deals are based on mutual trust. Nevertheless, the grey market is completely legal, unlike the black one, which is outside the law.

Why trade on the grey market

The main advantage of grey market trading is that you can buy stocks before they are listed on any exchange. Then, if the IPO is successful, you will make a profit. Another point is that you can trade all those financial securities which are suspended from trading on the official markets.


2022-04-13 • Updated

Choose your payment system

Feel the Team Spirit


Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later