How To Buy Aurora Cannabis Stock 2020
Welcome to Trading Brokers step by step guide to buying Aurora Cannabis stock in 2020. Here you will find an easy to understand explanation of trading Aurora Cannabis stock. This includes how to buy Aurora Cannabis shares online, what you need to trade Aurora Cannabis stock and how to open a trading account with a stock broker so that you can buy Aurora Cannabis stock online today.
Maybe you have heard of buying Aurora Cannabis stock online or through a friend. Perhaps you are looking to trade and are curious about the different options available to you. Whether you are looking to speculate, invest or just learn more, this guide on how to buy Aurora Cannabis stock can help you along your journey.
Overview of Aurora Cannabis
Aurora Cannabis Inc. (ACB), founded in 2006, is a dominant player in the cannabis industry engaged in serving medical cannabis market, consumer use cannabis market and hemp-derived cannabidiol market around the world by producing high-quality cannabis. The Edmonton, Canada-based company is operating in 25 countries. Its primary focus is production and distribution of cannabis in Canada and overseas markets.
The company is helping customers improve their lives by offering innovative and high-quality cannabis products. Some of its famous products include Aurora Drift, CanniMed, San Rafael, Daily Special, AltaVie, and Whistler. It also produces dried cannabis, cannabis infused chocolates, cannabis oil, and oral dissolve strips.
Research & Development
Aurora is working on multiple scientific studies and publications. Some of the studies include random clinical trials, observational trials, and case studies to analyze the effects of cannabinoids in patients. It also supports scientific talent around the world focusing cannabis science.
Aurora runs its operations in Europe with the help of its subsidiary Aurora Deutschland, which is a leading importer and supplier of medical cannabis in the Europe. The company delivers medical cannabis to patients across Europe. Its products and distribution facilities are authorized by good manufacturing practices (GMP) system of European Union that enables the company to export its products globally.
Marijuana is among the rapidly growing industries of the world. The U.S. retail cannabis sales are expected to see a multiple-fold increase in the coming years, according to an estimate. Aurora has everything it takes to capitalize on the growing opportunities in the cannabis market. However, its long-term growth still depends on cannabis demand from the international markets.
Just a handful of countries around the world allow the use of cannabis for both medical and recreational purposes. The use of cannabis for recreational purpose is banned in most of the countries. Many potential markets are still in the process of making regulations for use of cannabis.
In short, Aurora’s future greatly depends on the legalization of cannabis in different regions around the world, and it will be too early to predict anything about the growth potential of the company in future given the current uncertainties.
Aurora has struggled in the past to boost revenue mainly due to lower-than-expected cannabis demand. The company has also closed some cultivation facilities due to flat sales. The management is also trying to limit expenses to offset the affects of revenue declines that are partly attributed to slower-than-expected export licensing approval for many countries. However, any rise in cannabis demand is expected to significantly boost Aurora revenues in the coming years.
Aurora is among very few cannabis producers that have presence in several countries outside the U.S and Canada. The company’s ability to do well in the overseas markets is supported by its export agreements, collaborations, research projects and farms. But again, the company has to wait for cannabis demand to surge to gain profitability.
Investing in Aurora Cannabis
Investing in Aurora Cannabis stock is when you buy Aurora Cannabis shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy Aurora Cannabis stock in order to try and make a profit when the Aurora Cannabis stock price increases in value.
Trading Aurora Cannabis stock
Trading Aurora Cannabis stock is when a trader speculates on the movement in the Aurora Cannabis stock price without actually owning the shares in Aurora Cannabis. Traders tend to buy and sell Aurora Cannabis stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.
You can buy and sell Aurora Cannabis stock online through various methods including spot markets, futures contracts, options contracts, spread bets, CFDs (contracts for differences) and ETFs (exchange-traded funds).
Aurora Cannabis CFDs
One of the most popular ways to trade Aurora Cannabis stock is via CFDs (contracts for differences). When trading Aurora Cannabis CFDs, you do not actually invest in Aurora Cannabis shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Aurora Cannabis stock price. A CFD is a financial contract, typically between a broker and a trader, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade.
A CFD trader can go short or long, set stop and limit losses and apply trading scenarios that align with their own personal objectives. Traders would open long (buy) positions, if they think the stock price of Aurora Cannabis will rise or short (sell) positions if they thought that the Aurora Cannabis stock price will fall. The difference in price between the entry and exit price is the traders realised profit or loss, excluding any broker commission and fees.
For example, if you think Aurora Cannabis shares are going to increase in price, you could buy a share CFD on the company. You will exchange the difference in price between when your position is opened and when it is closed, earning a profit if the shares increase in price and making a loss if they decrease in price.
On the contrary, if you think Aurora Cannabis shares are going to decrease in price, you could sell a share CFD on the company. You will still exchange the difference in price between when your position is opened and when it is closed, earning a profit if the shares decrease in price and making a loss if they increase in price.
Aurora Cannabis futures
Futures contracts are an agreement to buy or sell a specified asset at a certain date and price. Aurora Cannabis investors can use futures trading to speculate on the price movement of Aurora Cannabis stock in order to try and make a profit. Traders would look to go long (buy) a futures contract if they believe the price will rise or short (sell) a futures contract if they believe the price will fall. The difference in price between the price at the start and expiry date of the futures contract is the profit or loss from the contract.
Aurora Cannabis spread betting
Spread betting is a financial derivative that enables traders to speculate on Aurora Cannabis stock falling or rising without taking ownership of the underlying asset. If the trader makes a correct prediction and the asset does move in that direction, they could make a profit, minus any broker fees. On the other hand, if the price moves against their prediction, they would incur a loss.
Financial spread betting is similar in ways to CFD trading except that you are betting a fixed amount per point on the Aurora Cannabis stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.
Aurora Cannabis options
Aurora Cannabis options are financial instruments that are derivatives based on the value of Aurora Cannabis’s stock. Traders usually enter into calls when they expect the price of the underlying asset to increase, and puts when they expect the price to decrease. Option contracts come with an expiration date before which the holder needs to exercise their option to buy or sell an underlying asset at an agreed-upon price. The stated price on an option is known as the strike price.
Buyers can choose to exercise their calls and puts or not whereas sellers are obligated according to the buyer decision. Therefore, the sellers (writers) can be exposed to more risk than buyers whose losses can be limited to the premium paid for the contract in the instance they do not exercise the contract. On the other hand, sellers could lose more depending on the Aurora Cannabis market price.
Aurora Cannabis ETFs
Exchange Traded Funds (ETFs) enable traders to invest in a basket of securities that trade intraday like individual stocks on an exchange, and are typically designed to track the performance of an existing market or group of markets.
Each ETF is usually focused on a specific sector, asset class, or category. ETFs can be commonly used to help diversify an investment portfolio and create a mini-portfolio, or, for the active trader, they can be used to try and take advantage of price movements.
Aurora Cannabis is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside Aurora Cannabis, may consider ETFs.
Where to buy Aurora Cannabis stock?
Stock trades are processed via a stock exchange, where a stock broker represents each investor. The majority of investors will nowadays use an online stock broker to buy and sell stocks through a stock trading platform which will enable them to connect to the stock exchange. You can see a selection of our best stock brokers below with whom you can open a trading account to trade stocks online.
ASIC, BVI, CBI, FFAJ, FSA, FSCA
Min $100 Deposit
FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF
Min $250 Deposit
ASIC, FCA, DFSA, SCB, CySEC
Min $200 Deposit
ASIC, CySEC, IFSC
Min $5 Deposit
Why trade Aurora Cannabis stock?
Trading the stock market has become a popular investment activity for many people, especially with the technology that we have these days making it more accessible than ever. There are a vast number of trading brokers, trading platforms and trading apps available for buying and selling Aurora Cannabis stock with relative ease. The cost involved to get started makes trading Aurora Cannabis stock accessible to traders of all experience levels from across the globe.
The availability of leverage has also contributed towards the increase in aspiring traders. Leverage allows traders to hold a position size greater than they would have been able to without it. E.g. An account balance of $1,000, could take a position size of $5,000 with 1:5 leverage. Whilst this can increase potential profits, it also greatly increases risk. It is therefore of the upmost importance that you have a clear understanding of the significant risks involved with online trading, especially when using leveraged positions.
The majority of traders would look to buy and sell Aurora Cannabis stock to try and earn profit from the variation in Aurora Cannabis’s stock price. When trading Aurora Cannabis CFDs you can speculate long and short on prices rising or falling without actually needing to invest in Aurora Cannabis shares. This can make it a more convenient trading method for anyone who has a trading account with an online broker. Alternatively, long term investors may purchase traditional shares in Aurora Cannabis’s stock for a more long-term hold.
Buying Aurora Cannabis stock can also be a way to diversify a trading portfolio and to hedge against shares in other stocks or investments in other asset classes such as forex, commodities, precious metals and cryptocurrencies.
However, before investing in Aurora Cannabis, it is important you understand the dynamics that affect the Aurora Cannabis stock price.
How to trade Aurora Cannabis stock online?
If you have taken the time to read through the above, you should hopefully have an understanding of how to trade Aurora Cannabis stock online. Here is a summary of the key steps:
1. Decide if trading Aurora Cannabis stock is for you
Trading Aurora Cannabis stock online carries an element of risk and can take more time than other forms of investing. You will need to research the company, manage your positions, follow market news and decide how to react to it. It is important to understand the risks and dedication that comes with trading Aurora Cannabis stock online.
2. Educate yourself
Before trading Aurora Cannabis stock, it is imperative to learn as much as possible about investing and trading online. Any mistake could prove to be costly. There is an abundance of free educational materials provided by many online brokers that can help you to improve your trading skills and knowledge.
Most brokerages will also provide a free demo trading account so that you can practice trading Aurora Cannabis stock online with virtual funds in order to familiarise yourself with the trading platforms and practice your trading strategies until you feel confident enough to open a real trading account.
3. Choose a Aurora Cannabis stock broker
In order to trade Aurora Cannabis stock online, you will need a broker account and trading platform to execute your trade positions through to the market. When choosing a broker, there are a few important things to consider such as regulation, commission fees, platforms, tools, education, funding options and customer support.
If you do not have the time to research brokers, you can see a list of our best brokers that we have already prepared to help traders. If you would like to know more, you can also view our detailed guide on how to choose a trading broker.
4. Research Aurora Cannabis
If you have made it this far then you may be ready to start trading Aurora Cannabis stock online! The next step is to research Aurora Cannabis to help increase your knowledge in the company. The best brokers should have this information conveniently displayed for you within their trading platform.
5. Have a trading plan
Some of the most important factors that can help determine Aurora Cannabis stock trading performance can be the trading plan and discipline. It is important to have a solid trading plan personalised to your own needs that includes the money management and trading strategy that you will use. Most experts and professional traders would try to not let negative emotions such as fear, anger and greed affect their trading strategy.
6. Buy and sell Aurora Cannabis stock
Once you feel ready to trade Aurora Cannabis stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on Aurora Cannabis, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of Aurora Cannabis trades for the long-term, whereas traders may buy and sell Aurora Cannabis stock on a daily basis.
Is trading Aurora Cannabis stock right for me?
Trading Aurora Cannabis stock is a popular choice for long-term investors and active traders. It can be suitable for scalping, day trading and swing trading. Traders who would usually trade forex, trade indices, trade commodities, trade cryptocurrency, may look to diversify their portfolio.
However, it is important to understand the significant risks involved with trading Aurora Cannabis stock online, especially when using leveraged positions. Most experts would suggest trading on a demo account with virtual funds to begin with.
This can be a useful way to familiarise yourself with how to trade Aurora Cannabis stock and using trading platforms whilst allowing you to practice your trading strategies until you feel confident and produce consistent results. Most stock brokers provide unlimited demo accounts free of charge.
Not sure which Aurora Cannabis broker to trade online with?
If you are still unsure which Aurora Cannabis stock broker is the best for you to trade online with then you can use our free online broker comparison tool to quickly compare brokers based on regulations, minimum deposit, leverage, spreads, commissions, funding options and more. You can also read our broker reviews and choose from our best brokers, best trading platforms, best social trading platforms and best trading apps. If you would like to look for the best trading brokers in a particular country, we have pages dedicated to our best brokers USA, best brokers UK, best brokers Australia, best brokers South Africa and best brokers Canada.
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