How To Buy Best Buy Stock

How To Buy Best Buy Stock

Welcome to Trading Brokers step by step guide to buying Best Buy stock. Here you will find an easy to understand explanation of trading Best Buy stock. This includes how to buy Best Buy shares online, what you need to trade Best Buy stock and how to open a trading account with a stock broker so that you can buy Best Buy stock online today.

Maybe you have heard of buying Best Buy 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 Best Buy stock can help you along your journey.

Overview of Best Buy

Best Buy Co., Inc. retails technology products in the United States, Canada, and Mexico. The company was formerly known as Sound of Music, Inc. They were founded in 1966 and are headquartered in Richfield, Minnesota.

The company operates in two segments, Domestic and International. Its stores provide computing and mobile phones, such as computing and peripherals, e-readers, networking products, tablets, and wearables, as well as mobile phones comprising related mobile network carrier commissions; consumer electronics, including digital imaging, health and fitness, home cinema, portable audio, and smart home products; and entertainment products consisting of drones, peripherals, movies, music, and toys, as well as gaming hardware and software, and virtual reality and other software products.

The company’s stores also offer appliances, such as dishwashers, laundry appliances, ovens, refrigerators, blenders, coffee makers, and vacuums; and other products, including beverages, snacks, and sundry items, along with baby products, luggage, and some sporting goods. In addition to this, they provide services comprising consultation, design, delivery, installation, memberships, protection plans, repair, set-up, and technical support services, as well as connected health services for aging consumers.

The company offers its products through stores and Websites under the BestBuy, Best Buy Express, Best Buy Mobile, Geek Squad, Best Buy Health, CST, GreatCall, Lively, Magnolia, Pacific Kitchen, Home, greatcall.com, bestbuy.ca and bestbuy.com.mx brands, as well as through mobile applications and call centers.

Investing in Best Buy

Investing in Best Buy stock is when you buy Best Buy shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy Best Buy stock in order to try and make a profit when the Best Buy stock price increases in value.

Trading Best Buy stock

Trading Best Buy stock is when a trader speculates on the movement in the Best Buy stock price without actually owning the shares in Best Buy. Traders tend to buy and sell Best Buy stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.

You can buy and sell Best Buy stock online through various methods including spot markets, futures contracts, options contracts, spread bets, CFDs (contracts for differences) and ETFs (exchange-traded funds).

Best Buy CFDs

One of the most popular ways to trade Best Buy stock is via CFDs (contracts for differences). When trading Best Buy CFDs, you do not actually invest in Best Buy shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Best Buy 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 a stop loss to limit losses and a take profit to exit the trade if in a profitable position. CFD traders will choose stocks that they have an interest in trading and apply trading scenarios that align with their own personal objectives.

Traders would open long (buy) positions, if they think the stock price of Best Buy will rise or short (sell) positions if they thought that the Best Buy 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 Best Buy 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 Best Buy 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.

Best Buy futures

Futures contracts are an agreement to buy or sell a specified asset at a certain date and price. Best Buy investors can use futures trading to speculate on the price movement of Best Buy 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.

Best Buy spread betting

Spread betting is a financial derivative that enables traders to speculate on Best Buy 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 Best Buy stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.

Best Buy options

Best Buy options are financial instruments that are derivatives based on the value of Best Buy’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 Best Buy market price.

Best Buy 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.

Best Buy is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside Best Buy, may consider ETFs.

Where to buy Best Buy 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 an account to trade stocks online.

Broker
Rating
Regulated
Min. Deposit
Founded
Max. Leverage
1.

ASIC, BVI, CBI, FFAJ, FSA, FSCA

Min $100 Deposit

2006

1:400

Review Trade! Trade!
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
2.

FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF

Min $250 Deposit

1974

1:200

Review Trade! Trade!
Terms & conditions apply
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
3.

ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA

Min $200 Deposit

2010

1:500

Review Trade! Trade!
Terms & conditions apply
CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
4.

ASIC, CySEC, IFSC, DFSA

Min $5 Deposit

2009

1:888

Review Trade! Trade!
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.28% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
5.

ASIC, CySEC, FSA

Min $200 Deposit

2007

1:500

Review Trade! Trade!
Terms & conditions apply
Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Why trade Best Buy 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 Best Buy stock with relative ease. The cost involved to get started makes trading Best Buy 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 Best Buy stock to try and earn profit from the variation in Best Buy’s stock price. When trading Best Buy CFDs you can speculate long and short on prices rising or falling without actually needing to invest in Best Buy 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 Best Buy’s stock for a more long-term hold.

Buying Best Buy 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 Best Buy, it is important you understand the dynamics that affect the Best Buy stock price.

How to trade Best Buy stock online?

If you have taken the time to read through the above, you should hopefully have an understanding of how to trade Best Buy stock online. Here is a summary of the key steps:

1.     Decide if trading Best Buy stock is for you

Trading Best Buy 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 Best Buy stock online.

2.     Educate yourself

Before trading Best Buy 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 Best Buy 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 Best Buy stock broker

In order to trade Best Buy 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 Best Buy

If you have made it this far then you may be ready to start trading Best Buy stock online! The next step is to research Best Buy 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 Best Buy 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 Best Buy stock

Once you feel ready to trade Best Buy stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on Best Buy, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of Best Buy trades for the long-term, whereas traders may buy and sell Best Buy stock on a daily basis.

Is trading Best Buy stock right for me?

Trading Best Buy 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 Best Buy 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 Best Buy 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.

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