Benzinga | Apr 14, 2021 05:25PM EDT

IPO Warrior Matt Hammond Joins 'Power Hour' To Talk Trading Coinbase

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.

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.

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)