How To Buy Nikola Stock

How To Buy Nikola Stock

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

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

Overview of Nikola

Nikola Corporation (NKLA) offer its expertise in integrated zero emissions transportation systems. The company is engaged in designing battery and hydrogen electric automobiles, electric vehicle powertrain, auto parts, hydrogen fueling infrastructure, and energy storage systems.

The Phoenix, Arizona-based company was founded in 2015 by Trevor Milton, a former Chief Executive Officer at dHybrid Systems.

Product lineup

Nikola’s product line comprises battery and hydrogen electric class 8 trucks for commercial use, as well as off-road vehicles and watercrafts. The company has announced several zero-emissions automobile design concepts since its foundation. Here we will discuss some of its key products

Nikola One

Nikola One, also known as hydrogen-electric sleeper cab truck, is powered by hydrogen. It is a semi-electric truck capable of pulling a gross weight of about 80,000lbs and can travel up to 1200 miles on a full charge. Its design includes a battery with a capacity of 320 kWh EV, providing six traction electric motors.

Nikola Two

It is a class 8 hydrogen-electric truck, apparently resembling Nikola One, offering a horsepower of over 1,000 and a torque of 2,000 ft. lbs., making it way powerful than any existing semi-truck. Nikola Two has zero tailpipe emissions and offers a range between 750 km to 1,200 km.

Nikola Tre

Nikola Tre has horsepower in a range of 500 to 1,000 and comes with a 6×4/6×2 configurations. Depending on the options, it can travel in a range of 500 to 1,200 kms.

Nikola Reckless

It is a unique electric off-road vehicle that is intended specially for military, among other clients. The company claims that Nikola Reckless has a power capacity to support remote weapon systems. It has a low thermal signature that makes it nearly soundless.

Factors affecting Nikola’s stock price

In case of Nikola, there are two key factors that can affect its stock in a positive or negative way.

Unique technology

Most of the electric car makers design vehicles that are recharged through electric charging stations. However, Nikola on the other hand plans to launch vehicles that will utilize hydrogen fuel cell technology, which produces electricity by combining oxygen (O2) from the air with hydrogen stored in a tank, offering longer range with less time needed for recharging.

Nikola has faced some criticism over the technology, but many industry experts believe that such vehicles have better future in the long-term, as compared to pure electric cars. Hydrogen fuel cells were costly in the past, but the prices have declined with time and expected to drop further in the coming time that will make the technology more affordable and widespread, which will ultimately help Nikola products to gain market share.

Financing

Nikola needs credit to fund its hydrogen station infrastructure projects. The company’s vehicles will need refueling, and for that Nikola needs to build a network of hydrogen refueling stations. Its vehicles will do well in the market if there are more refueling options for the customers spread across the United States and worldwide. Therefore, Nikola needs to raise capital to capitalize on the opportunities in the long-term.

Investing in Nikola

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

Trading Nikola stock

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

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

Nikola CFDs

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

Nikola futures

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

Nikola spread betting

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

Nikola options

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

Nikola 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.

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

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

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

How to trade Nikola stock online?

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

1.     Decide if trading Nikola stock is for you

Trading Nikola 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 Nikola stock online.

2.     Educate yourself

Before trading Nikola 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 Nikola 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 Nikola stock broker

In order to trade Nikola 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 Nikola

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

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

Is trading Nikola stock right for me?

Trading Nikola 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 Nikola 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 Nikola 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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