How To Buy Nio Stock
Welcome to Trading Brokers step by step guide to buying Nio stock. Here you will find an easy to understand explanation of trading Nio stock. This includes how to buy Nio shares online, what you need to trade Nio stock and how to open a trading account with a stock broker so that you can buy Nio stock online today.
Maybe you have heard of buying Nio 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 Nio stock can help you along your journey.
Overview of Nio
Nio Inc. (NYSE: NIO), founded in November 2014, is engaged in designing, manufacturing, and selling smart and connected electric cars. The Shanghai-based company is working on autonomous electric vehicles equipped with artificial intelligence (AI) and next generation technologies.
The company also offers vehicle charging solutions and services such as Power Express, Power Swap, and Power Mobile. Moreover, it provides several value-added services to its customers like car damage insurance, third-party liability insurance, repair and maintenance services, roadside assistance etc.
Nio has launched several exciting models over the years including ES6, ES8, EC6 etc.
ES6 is a smart electric SUV and takes just 4.7 seconds to sprint from 0 to 100 km per hour. The vehicle has a 160kw PM motor, offering a horsepower of up to 544. It has an electric brake booster system along with Pirelli P-Zero tires that ensure efficient braking at the time of need. The vehicle is built with carbon fiber parts, with aluminum body ensuring the safety customers need. ES6 comes with NOMI, a sophisticated AI system powered by the company’s cloud computing system and voice interaction technology.
ES8 is considered Nio’s flagship version that goes from 0 to 100 km per hour in 4.9 seconds. The SUV comes with a comfortable and entertaining interior, offering every control on the dash. The vehicle has an in-house built driving assistance called NIO Pilot that provides a safe and crystal-clear view on what is around the vehicle, as it comes with 20 assistance features. ES8 is also powered by NOMI.
EC6, equipped with NOMI and NIO Pilot, offers a panoramic moonroof that ensures maximum natural light in the vehicle, while offering protection against 99.9 percent of UV rays and 83 percent of heat with its laminated glass. The model comes with two electric motors and a 110kWh battery, providing a range of over 370 miles.
Factors that move the Nio stock price
Whether you are in for the short, mid or long-term, it is vital you know those factors that can affect the Nio stock price. There are many factors that control performance and growth of a company. In the case of Nio, there are three key indicators.
The electric vehicle (EV) market is booming across the world, specially in China, as economies turn to more sustainable energy sources. Demand for EVs will likely boost in future as Chinese government tries to replace ordinary cars with electric ones. The trend could benefit Nio, as it is one of the key electric car makers in the country. The company can capitalize on massive opportunities in the EV market not just in China, but also in the international markets.
Nio will have to increase its manufacturing capabilities to boost production to compete with rivals and raise its market share. Rival companies, like Tesla, have been investing heavily on vehicle manufacturing facilities to take advantage of the high demand. Nio can also generate massive revenues by following the same path.
Nio has become increasingly popular in the market for its value-added services. For instance, its “battery as a service” model allows customers to replace the depleted batteries with new completely-charges ones. The company is offering this facility at more than 140 battery swapping locations spread across 64 cities. Customers do not have to wait at a charging station for recharging batteries, as swapping battery takes almost same time as refilling gas in gasoline powered cars.
Such services are helping Nio to distinguish itself from the rivals and driving its sales, ultimately helping the company to grow at a rapid pace.
Investing in Nio
Investing in Nio stock is when you buy Nio shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy Nio stock in order to try and make a profit when the Nio stock price increases in value.
Trading Nio stock
Trading Nio stock is when a trader speculates on the movement in the Nio stock price without actually owning the shares in Nio. Traders tend to buy and sell Nio stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.
You can buy and sell Nio 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 Nio stock is via CFDs (contracts for differences). When trading Nio CFDs, you do not actually invest in Nio shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Nio 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 Nio will rise or short (sell) positions if they thought that the Nio 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 Nio 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 Nio 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. Nio investors can use futures trading to speculate on the price movement of Nio 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.
Nio spread betting
Spread betting is a financial derivative that enables traders to speculate on Nio 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 Nio stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.
Nio options are financial instruments that are derivatives based on the value of Nio’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 Nio 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.
Nio is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside Nio, may consider ETFs.
Where to buy Nio 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 Nio 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 Nio stock with relative ease. The cost involved to get started makes trading Nio 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 Nio stock to try and earn profit from the variation in Nio’s stock price. When trading Nio CFDs you can speculate long and short on prices rising or falling without actually needing to invest in Nio 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 Nio’s stock for a more long-term hold.
Buying Nio 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 Nio, it is important you understand the dynamics that affect the Nio stock price.
How to trade Nio stock online?
If you have taken the time to read through the above, you should hopefully have an understanding of how to trade Nio stock online. Here is a summary of the key steps:
1. Decide if trading Nio stock is for you
Trading Nio 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 Nio stock online.
2. Educate yourself
Before trading Nio 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 Nio 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 Nio stock broker
In order to trade Nio 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 Nio
If you have made it this far then you may be ready to start trading Nio stock online! The next step is to research Nio 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 Nio 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 Nio stock
Once you feel ready to trade Nio stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on Nio, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of Nio trades for the long-term, whereas traders may buy and sell Nio stock on a daily basis.
Is trading Nio stock right for me?
Trading Nio 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 Nio 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 Nio 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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