How To Buy LG Stock
Welcome to Trading Brokers step by step guide to buying LG stock. Here you will find an easy to understand explanation of trading LG stock. This includes how to buy LG shares online, what you need to trade LG stock and how to open a trading account with a stock broker so that you can buy LG stock online today.
Maybe you have heard of buying LG 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 LG stock can help you along your journey.
Overview of LG
In 1947, a Korean Businessman Koo In-howi founded LG Corporation as Lak Hui Chemical Industrial Corp. and rebranded it in 1995 as LG Electronics. It is a multinational conglomerate company, with products ranging from electronics, telecommunications, engineering, power generation, chemicals, information technology, etc. The company’s headquarters are located in Seoul, South Korea. The company is listed on the Korean Stock Exchange (KRX). LG Corporation has many subsidiaries, which are listed below:
LG Electronics manufactures and sells consumer electronics and home appliances. The products range from televisions, mobile devices, computers, tablets, smartwatches, refrigerators, air conditioners, washing machines, etc.
LG Uplus Corp. is a South Korean cellular company providing services of mobile telephony and wireless broadband services. The company is also listed on the Korean Stock Exchange and has two subsidiary companies AIN Teleservice and CS Leader.
LG Solar Energy
LG Solar Energy provides solar energy roof panels to households and businesses across various countries.
The company manufactures OLED, TFT panels, and flexible displays.
LG Household & Health Care
The company markets cosmetics, beverages, and household items. It handles each line of business through its three business divisions.
The Company’s business includes supplies of petrochemicals, plastic materials and chemicals, energy solutions, and IT and electronics materials.
LG Corporation’s Stock
LG Corporation’s stock is traded on the Korean Stock Exchange, whereas the stock of its subsidiary company LG Electronics trades on the London Stock Exchange as well. To buy its stock, investors will either have to open an overseas brokerage account or invest in mutual funds or ETFs that own shares of different Korean companies. Moreover, to purchase the stock in the Korean Stock Exchange, an investor will have to convert the money into South Korean Won (KRW).
What moves LG Corporation’s Stock Price?
LG Corporation is a holding company and has many big subsidiary companies doing business all over the world. Because of its businesses in diversified industries, owning the company’s stock can provide diversification benefits to investors. While the stock should be relatively stable owing to its diversified business, an investor should look out for certain factors that can affect LG Corporation’s stock price.
Profit/Loss of a subsidiary company
You should monitor the quarterly and annual reports of the company and its subsidiaries before investing in the stock. The profit and loss statements analysis can provide you some clues into the future direction of the stock price. Any major change in the profit and loss of the parent company or any of its subsidiaries can follow a big move in the price of the stock.
Overall state of the economy
Since the company operates worldwide, the state of the global economy can affect the stock price of LG Corporation. A slow-down in the global economy might impact the sales of the company and vice versa.
Korean Stock market
While the stocks of most of the company’s subsidiaries also trade on the Korean Stock Exchange, any change that influences the overall index or the Korean Stock Exchange can move the LG Corporation’s stock as well as its subsidiaries’.
New Investments or Divestments
Companies continuously search for new investment opportunities in an effort to further increase their revenue and growth. Therefore, when the company announces its new investment decision, investors should expect the stock to move upwards. On the other hand, divestment decisions can sometimes drag the price of shares downward because of the perceived failure of the investment.
Investing in LG
Investing in LG stock is when you buy LG shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy LG stock in order to try and make a profit when the LG stock price increases in value.
Trading LG stock
Trading LG stock is when a trader speculates on the movement in the LG stock price without actually owning the shares in LG. Traders tend to buy and sell LG stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.
You can buy and sell LG 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 LG stock is via CFDs (contracts for differences). When trading LG CFDs, you do not actually invest in LG shares, meaning you are not tied to them. You are only speculating on the rise or fall of the LG 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 LG will rise or short (sell) positions if they thought that the LG 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 LG 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 LG 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. LG investors can use futures trading to speculate on the price movement of LG 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.
LG spread betting
Spread betting is a financial derivative that enables traders to speculate on LG 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 LG stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.
LG options are financial instruments that are derivatives based on the value of LG’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 LG 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.
LG is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside LG, may consider ETFs.
Where to buy LG 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, FCA, DFSA, SCB, CySEC, BaFin, CMA
Min $200 Deposit
ASIC, CySEC, IFSC, DFSA
Min $5 Deposit
Why trade LG 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 LG stock with relative ease. The cost involved to get started makes trading LG 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 LG stock to try and earn profit from the variation in LG’s stock price. When trading LG CFDs you can speculate long and short on prices rising or falling without actually needing to invest in LG 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 LG’s stock for a more long-term hold.
Buying LG 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 LG, it is important you understand the dynamics that affect the LG stock price.
How to trade LG stock online?
If you have taken the time to read through the above, you should hopefully have an understanding of how to trade LG stock online. Here is a summary of the key steps:
1. Decide if trading LG stock is for you
Trading LG 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 LG stock online.
2. Educate yourself
Before trading LG 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 LG 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 LG stock broker
In order to trade LG 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 LG
If you have made it this far then you may be ready to start trading LG stock online! The next step is to research LG 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 LG 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 LG stock
Once you feel ready to trade LG stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on LG, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of LG trades for the long-term, whereas traders may buy and sell LG stock on a daily basis.
Is trading LG stock right for me?
Trading LG 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.
No matter how diversified a company’s business is, there is always a risk when you buy its stock. Therefore, an investor should carefully analyse its business reports and keep in touch with the latest news about the company before investing in it.
However, it is important to understand the significant risks involved with trading LG 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 LG 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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