How To Buy BioNTech Stock
Welcome to Trading Brokers step by step guide to buying BioNTech stock. Here you will find an easy to understand explanation of trading BioNTech stock. This includes how to buy BioNTech shares online, what you need to trade BioNTech stock and how to open a trading account with a stock broker so that you can buy BioNTech stock online today.
Maybe you have heard of buying BioNTech 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 BioNTech stock can help you along your journey.
BioNTech, a German biotechnology company, is involved in vaccine development and production. What should you know about its stock?
Overview of BioNTech
BioNTech SE is a German biotech company specializing in the development and production of active immunotherapies and vaccines for disease prevention. Founded in 2008, the company currently employs over 1,000 employees.
BioNTech’s initial aim was to develop biological products that treat a variety of cancers in humans. While it still does that, it has expanded to other disease types and already has vaccine candidates for tuberculosis, HIV, and even COVID-19.
Headquartered in Mainz, Germany, with offices in 5 other locations, including the US, the company was founded by a married couple (Ugur Sahin and wife, Ozlem Tureci) who are both immunotherapy specialists.
How Does BioNTech do Business?
BioNTech focuses on developing and producing vaccines for a range of human diseases, notably cancer, HIV and tuberculosis. While the company has not released any vaccines into the market yet, many of its vaccine candidates have made it to later development stages.
The company’s strategy is to deploy the body’s immune system to attack cancer cells rather than viruses. That approach has also been deployed to other areas, most notably in the fight against the COVID-19 disease. Some of its biggest competitors are Moderna Inc. and Gilead Sciences.
What Moves BioNTech Stock?
On the NASDAQ as BNTX, BioNTech SE went public in late 2019 at a valuation of $3.4 billion. It is one of the largest biotech startups by market capitalization. Many macro and micro trends can affect BioNTech stock. However, those discussed here can have some of the most telling impact on it in the future.
Strategic Industry Partnerships
BioNTech has entered into some meaningful industry partnerships that may turn out to become quite useful later. For one, deploying mRNA technology, it teamed up with the pharma giant Pfizer for the development of a COVID-19 vaccine.
The collaboration yielded some success as it combined a young, innovative biotech startup’s strengths with the enormous resources, global distribution chain and the reach of the bigger pharma company. Plus, partnering with Pfizer gave some massive credibility to its work. BioNtech also has a deal with another pharma giant, Roche, to develop mRNA-based immunotherapies for cancer treatment. The deal is reportedly worth $310 million.
The company has taken strategic partnerships beyond the core pharmaceutical industry and has worked hand-in-hand with credible civil society organizations to help it achieve its projects. In September 2019, it entered into an agreement with the Bill and Melinda Gates Foundation to work on vaccine candidates for HIV and tuberculosis.
There have also been partnerships with academia, notably the University of Zurich, to develop nucleic acid therapeutics still geared towards cancer treatment. It must be noted that most of the firm’s competitors cannot boast of such high-level partnerships. And the fact that these pharma conglomerates particularly chose to work with BioNTech might be a testament to its quality as a potential industry-leading biotech startup.
Approach to Product Development
BioNTech takes a unique approach to develop most of its products. Its cancer vaccines are tailored to each patient’s needs. The company aims to revolutionize cancer treatment by developing “patient-specific” immunotherapies. This does not come at a better time.
Personalized Medicine is regarded as the future of medical treatment, and companies leading the charge now are best positioned to become industry leaders.
Potential Successful Vaccines
BioNTech has been noted for developing promising vaccine candidates that have advanced to the latter stages of development. Particular mention must be made of its COVID-19 vaccine, which has received several million pre-orders – worth billions of dollars – from leading governments.
Before COVID-19, BioNTech has had considerable success as it has reportedly successfully treated 250 cancer patients of 17 different tumor types.
There have been talks of the crucial part that biotech will play in healthcare and the medical industry in the years to come. However, the COVID-19 pandemic fast-tracked the whole process. In the future, biotech will lead transformations in areas such as drug discovery and development and disease diagnosis and treatment.
BioNTech is gradually positioning itself as a force to reckon with in that future.
Investors are increasingly placing a premium on corporate governance issues, which are increasingly becoming factors that affect stock prices. The biotechnology industry particularly historically has had problems with corporate governance, especially surrounding transparency. In this regard, Theranos’s failure story actively comes to mind.
Competitors like Moderna Inc. have been severely accused of issues relating to this. However, BioNTech has been noted to exercise transparency as discoveries, trials and other activities are always appropriately disclosed.
The biotech industry is a very competitive one, with young and vibrant companies developing innovative solutions to solve humankind’s biggest health challenges. BioNTech’s most prominent competitors include other biotech and biopharma startups that may get approvals for groundbreaking vaccines. However, it also includes the large pharma giants, which also have constantly-innovating divisions.
What to Know Before Investing in BioNTech
BioNTech is a growth stock. It is still a loss-making company. There are potentials for massive ROI if any of its vaccine candidates become successful, however. Otherwise, there may only be losses for the firm.
Investing in BioNTech
Investing in BioNTech stock is when you buy BioNTech shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy BioNTech stock in order to try and make a profit when the BioNTech stock price increases in value.
Trading BioNTech stock
Trading BioNTech stock is when a trader speculates on the movement in the BioNTech stock price without actually owning the shares in BioNTech. Traders tend to buy and sell BioNTech stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.
You can buy and sell BioNTech stock online through various methods including spot markets, futures contracts, options contracts, spread bets, CFDs (contracts for differences) and ETFs (exchange-traded funds).
One of the most popular ways to trade BioNTech stock is via CFDs (contracts for differences). When trading BioNTech CFDs, you do not actually invest in BioNTech shares, meaning you are not tied to them. You are only speculating on the rise or fall of the BioNTech 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 BioNTech will rise or short (sell) positions if they thought that the BioNTech 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 BioNTech 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 BioNTech 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.
Futures contracts are an agreement to buy or sell a specified asset at a certain date and price. BioNTech investors can use futures trading to speculate on the price movement of BioNTech 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.
BioNTech spread betting
Spread betting is a financial derivative that enables traders to speculate on BioNTech 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 BioNTech stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.
BioNTech options are financial instruments that are derivatives based on the value of BioNTech’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 BioNTech market price.
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.
BioNTech is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside BioNTech, may consider ETFs.
Where to buy BioNTech 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.
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, CySEC, IFSC, DFSA
Min $5 Deposit
ASIC, CySEC, FSA
Min $200 Deposit
ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA
Min $200 Deposit
Why trade BioNTech 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 BioNTech stock with relative ease. The cost involved to get started makes trading BioNTech 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 BioNTech stock to try and earn profit from the variation in BioNTech’s stock price. When trading BioNTech CFDs you can speculate long and short on prices rising or falling without actually needing to invest in BioNTech 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 BioNTech’s stock for a more long-term hold.
Buying BioNTech 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 BioNTech, it is important you understand the dynamics that affect the BioNTech stock price.
How to trade BioNTech stock online?
If you have taken the time to read through the above, you should hopefully have an understanding of how to trade BioNTech stock online. Here is a summary of the key steps:
1. Decide if trading BioNTech stock is for you
Trading BioNTech 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 BioNTech stock online.
2. Educate yourself
Before trading BioNTech 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 BioNTech 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 BioNTech stock broker
In order to trade BioNTech 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 BioNTech
If you have made it this far then you may be ready to start trading BioNTech stock online! The next step is to research BioNTech 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 BioNTech 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 BioNTech stock
Once you feel ready to trade BioNTech stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on BioNTech, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of BioNTech trades for the long-term, whereas traders may buy and sell BioNTech stock on a daily basis.
Is trading BioNTech stock right for me?
Trading BioNTech 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 BioNTech 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 BioNTech 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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