What is a target price?

The indicative price is the expected opening price of a share on a trading day, based on the buy and sell orders submitted before the start of trading. This price provides an indication of where the share may open, but is completely non-binding and can change as new orders are submitted or market conditions change.

Comparable terms:

• Target Price: The price where analysts expect a share to stand at a certain point in the future.
• Guidance Price: A price that serves as a guideline for traders, usually based on technical analysis.
• Intervention Rate: A rate set by a central bank at which it will intervene to support the value of a currency.

Knowing the indicative price helps investors assess the expected market opening and determine their trading strategy for the day.