How To Buy Nike Stock
Welcome to Trading Brokers step by step guide to buying Nike stock. Here you will find an easy to understand explanation of trading Nike stock. This includes how to buy Nike shares online, what you need to trade Nike stock and how to open a trading account with a stock broker so that you can buy Nike stock online today.
Maybe you have heard of buying Nike 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 Nike stock can help you along your journey.
Overview of Nike
Nike, Inc. (NYSE: NKE), founded in 1964 by Bill Bowerman and Phil Knight, manufactures and markets sportswear accessories, apparel, and equipment. The company was incorporated as Blue Ribbon Sports but was rebranded as Nike in 1971. In 1990, the company opened its first store in Oregon.
Nike currently ranks as the most valuable sports business brand, valuing more than $32 billion. The headquarters of the company are located in Beaverton, Oregon, US. The company has offices in 45 countries and has about 700 worldwide.
The company is rivaled by Adidas, a German sportswear company. Other competitors include Reebok, Puma, Fila, etc.
Nike Inc. stock
The company is listed on the New York Stock Exchange, with NKE as its stock symbol. Nike’s stock is a component of DJIA, S&P 100, and S&P 500 indices. The company made its IPO in December 1980 when the shares were offered to the general public at 18 cents a share.
What moves the price of Nike Stock?
Nike is a market leader in the footwear and sports apparel business and given the strong brand equity of Nike, its stock is highly rated by investors and analysts alike. However, no matter how precious and highly-rated a stock is, stocks do move during daily trading at the stock exchange. Therefore, to predict and analyze the stock price movements, an investor must keep the following important factors in mind before trading or investing in Nike stock.
Analysts’ Estimates and Earnings Reports
As soon as the company’s quarterly earnings reports are released, the stock price witnesses immediate movement, depending on whether the earnings reports beat or fall short of the expectations. When the earnings reports beat the analysts’ estimates, the stock price generally moves upwards. Conversely, earnings miss often result in a downward movement in stock price.
Therefore, an investor must closely follow the analysts’ estimates and earnings reports before trading the stock.
News & SEC filings
Any major and significant events that can cast an impact on revenues of the company are often discussed in the news and SEC filings. As soon as the news is released, the stock price moves, depending on the nature and impact of the news. If the news is positive for future revenue of the company, the stock price generally climbs upwards and vice versa. Therefore, as an informed investor, you must keep yourself updated about the significant developments surrounding the company.
New Product and Business
As an investor, you must pay close attention to any new products or an extension of a business line launched by Nike. Generally, the introduction of a new product is welcomed by investors and traders in the stock market and, therefore, can inch-up the stock price of Nike. An extension in a business line can further increase the stock price as investors positively perceive the news.
Moreover, any improvement in its business process like the introduction of an online ordering system that has revenue implications is generally construed as positive news and may generate investors’ interest, resulting in stock moving higher.
Nike’s stock price can move following the financial results of its competitors like Reebok, Fila, Adidas, and Puma. A drop in the market share of a competitor or any news negative for a competitor but positive for Nike can move upwards the stock price of Nike. A loss in the market share of Nike’s competitors might signify an uptick in Nike’s market share and revenue, which can increase its stock price.
The crux of the point is you should follow the earnings report and statistics of the industry as well as competitors to accurately predict the stock movement.
Stock prices react to news, events, and traders’ emotions. Therefore, an investor should gather as much information as possible about the stock he or she plans to invest in. The above-mentioned factors will help you make an informed investment decision, helping you accurately predict the direction of the stock price.
Investing in Nike
Investing in Nike stock is when you buy Nike shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy Nike stock in order to try and make a profit when the Nike stock price increases in value.
Trading Nike stock
Trading Nike stock is when a trader speculates on the movement in the Nike stock price without actually owning the shares in Nike. Traders tend to buy and sell Nike stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.
You can buy and sell Nike 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 Nike stock is via CFDs (contracts for differences). When trading Nike CFDs, you do not actually invest in Nike shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Nike 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 Nike will rise or short (sell) positions if they thought that the Nike 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 Nike 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 Nike 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. Nike investors can use futures trading to speculate on the price movement of Nike 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.
Nike spread betting
Spread betting is a financial derivative that enables traders to speculate on Nike 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 Nike stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.
Nike options are financial instruments that are derivatives based on the value of Nike’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 Nike 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.
Nike is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside Nike, may consider ETFs.
Where to buy Nike 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 Nike 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 Nike stock with relative ease. The cost involved to get started makes trading Nike 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 Nike stock to try and earn profit from the variation in Nike’s stock price. When trading Nike CFDs you can speculate long and short on prices rising or falling without actually needing to invest in Nike 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 Nike’s stock for a more long-term hold.
Buying Nike 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 Nike, it is important you understand the dynamics that affect the Nike stock price.
How to trade Nike stock online?
If you have taken the time to read through the above, you should hopefully have an understanding of how to trade Nike stock online. Here is a summary of the key steps:
1. Decide if trading Nike stock is for you
Trading Nike 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 Nike stock online.
2. Educate yourself
Before trading Nike 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 Nike 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 Nike stock broker
In order to trade Nike 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 Nike
If you have made it this far then you may be ready to start trading Nike stock online! The next step is to research Nike 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 Nike 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 Nike stock
Once you feel ready to trade Nike stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on Nike, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of Nike trades for the long-term, whereas traders may buy and sell Nike stock on a daily basis.
Is trading Nike stock right for me?
Trading Nike 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 Nike 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 Nike 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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