How To Buy Dell Stock

How To Buy Dell Stock

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

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

Overview of Dell

Dell Technologies Inc. (DELL), named after its founder Michael Dell, is a technology company engaged in designing and selling PCs and laptops, as well as related products and services. In 2015, the Round Rock, Texas-based company acquired EMC Corporation. Following the merger, both Dell and EMC operate under Dell Technologies with expanded product portfolio including data storage solutions, information security, cloud computing, virtualization, and analytics, as well as associated services.

Operational segments

The company primarily operates through two segments including client solutions and enterprise solutions group (ESG).

Client Solutions

The segment includes sales of desktops, notebooks, tablets, third-party software, monitors, printers and projectors among other related products and services. The client solutions division is also responsible for offering infrastructure management services and data analytics solutions based on cloud. The segment accounts for roughly half of the company’s overall sales.

Enterprise Solutions Group (ESG)

Dell offers storage, networking, and servers under its ESG segment, besides related services, third-party software, and peripherals that are closely linked to the sale of ESG hardware. The segment sells a range of products and services.

Factors controlling Dell’s growth

There are several industry specific indicators that need to be considered before making any investment move related to a stock. In case of Dell, we will discuss some of the factors that can contribute to its growth in future.

Renowned PC brand

Dell is among the leading PC makers of the world, selling personal computers, laptops, monitors and related products. The company is globally recognized for its award-winning products and exceptional services. It is dedicated to satisfying and meeting customers need in terms of product quality, reliability, and quality services. The company is expected to do well in the years to come if it managed to maintain its brand name and quality it offers.

Business model

Dell directly sells its products to consumers by cutting out middle retailers. Its efficient procurement and distribution process enable it to offer products at competitive price, besides providing round the clock customer support services. This enables the company to better compete with rivals in the market.

Customization

Dell builds computer systems based on specifications provided by customers. As a result, the company achieves key goals like customer satisfaction, lower inventory levels, and higher return on investment, thus driving more growth.

Diversification

Dell has stepped into new forays over the years. The company started with computers and then expanded its portfolio by adding other non-computing goods and offerings. For instance, it is working on its strategy for 5G to drive the future growth. The company is accelerating its digital transformation by combining 5G and artificial intelligence with its massive computing powers.

Changing demand

Dell has struggled against the declining PC demand over the years. But the good thing is that it no longer relies on PC sales. The company has stepped into other segments to offset the effects of declining computer business. However, if the demand for PCs and laptops surged in the coming years, Dell will be among the top beneficiaries.

Investing in Dell

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

Trading Dell stock

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

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

Dell CFDs

One of the most popular ways to trade Dell stock is via CFDs (contracts for differences). When trading Dell CFDs, you do not actually invest in Dell shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Dell 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 Dell will rise or short (sell) positions if they thought that the Dell 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 Dell 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 Dell 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.

Dell futures

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

Dell spread betting

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

Dell options

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

Dell 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.

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

Where to buy Dell 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, JFSA, FSCA, IIROC, ADGM FRSA

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

1:30

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, SCB

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

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

How to trade Dell stock online?

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

1.     Decide if trading Dell stock is for you

Trading Dell 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 Dell stock online.

2.     Educate yourself

Before trading Dell 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 Dell 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 Dell stock broker

In order to trade Dell 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 Dell

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

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

Is trading Dell stock right for me?

Trading Dell 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 Dell 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 Dell 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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