How To Buy Oracle Stock

How To Buy Oracle Stock

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

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

Overview of Oracle

Oracle Corp. (NYSE: ORCL) is a multinational computer technology giant that is engaged in developing, manufacturing, and selling database software, cloud engineered systems, and software products to individual and enterprises. It also provides related services such as financing, training, and hosting.

The Redwood City, California-based company, founded in 1977 by Larry Ellison, initially worked on relational databases. However, Oracle transformed and grew with time and added multiple products to its portfolio to become a leading provider of famous database management systems.

Operations

Oracle mainly operates through the following business segments.

Cloud and License

The segment is responsible for marketing, selling, and delivering infrastructure technologies, platform, and applications. The segment also includes its Cloud Infrastructure, which is Infrastructure as a Service (IaaS), that offers on-premises and high-performance computing power to operate cloud native and IT workloads of an enterprise.

Hardware

Oracle hardware comprises a complete suite of engineered systems, servers, and storage that allow businesses to enhance the performance of their application and databases, beside reducing costs and protecting critical data. The segment also provides industry-specific operating systems and hardware, management tools, and associated hardware support.

Services

Oracle’s services segment is responsible for providing consultation, advance support, and training to its clients across the globe.

Factors that move the Oracle stock price

Whether you are in for the short, mid or long-term, it is vital you know those factors that can affect the Oracle stock price. Growth outlook is a key factor for those looking to invest in a company. In case of Oracle, here are some of the key aspects’ investors should closely observe before making any decision.

Market competition

Oracle is facing fierce competition across all its segments. The nature of IT market creates a competitive environment that is continuously evolving, as companies in the industry emerge, expand, and collaborate according to their needs.

Enterprises around the world are seeking simple and affordable solutions to their problem that makes the IT industry competitive, with companies in the sector always looking to entice potential customers with competitive and low-cost products.

Oracle’s enterprise software, cloud and hardware products are facing intense competition from some of the biggest tech companies including software maker giant Microsoft (MSFT), chip maker giant Intel (INTC), International Business Machines Corp (IBM), and Hewlett-Packard Co. (HP) among many others. Moreover, new technologies from emerging companies like salesforce and Workday Inc. is also creating a challenging environment for Oracle’s products. The company continuously needs to maintain and improve its market share against rivals to boost its revenue and profit.

Full cloud stack

The cloud space is getting saturated with every passing day, however, there are just few companies that are offering a full cloud stack, and Oracle is one of them. Being a dominant player in the enterprise hardware and software integration industry naturally makes Oracle a top choice for potential clients.

Additionally, Oracle’s cloud is powered by artificial intelligence and machine-learning capabilities. For instance, the company’s Autonomous Database Cloud can remove errors, enhance security, and limit expenses, while its Engineered Systems automatically self-tunes to make customer’s Oracle workloads effective and cost efficient.

Investing in Oracle

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

Trading Oracle stock

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

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

Oracle CFDs

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

Oracle futures

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

Oracle spread betting

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

Oracle options

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

Oracle 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.

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

Where to buy Oracle 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, FSA, FSCA

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

1:500

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

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

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

How to trade Oracle stock online?

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

1.     Decide if trading Oracle stock is for you

Trading Oracle 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 Oracle stock online.

2.     Educate yourself

Before trading Oracle 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 Oracle 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 Oracle stock broker

In order to trade Oracle 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 Oracle

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

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

Is trading Oracle stock right for me?

Trading Oracle 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 Oracle 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 Oracle 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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