How To Buy Palantir Stock

How To Buy Palantir Stock

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

Maybe you have heard of buying Palantir 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 Palantir shares can help you along your journey.

Overview of Palantir

Palantir Technologies Inc. (PLTR) is a software company that offers its expertise in big data analytics. The company was founded in Denver, Colorado back in 2003. It provides a suite of software applications for handling, integrating, and analyzing information.

The company claims that its software can help businesses and organizations to address critical problems by bringing the right information to the right people. Its software enables users within and between government institutions to collaborate and investigate bulk data.

Key Products

Palantir has three main products including Palantir Gotham, Palantir Foundry, and Palantir Apollo.

Palantir Gotham

Organizations, whether government or private, usually have lots of data like spreadsheets, log files, images, videos etc. The data is normally saved in the offline systems, where it keeps diversifying and increasing in volume and more difficult to utilize. This is where Palantir Gotham Platform comes into play, which integrates and transforms any type of data into single, logical data asset that answers complex questions in the minds of people within an organization.

Palantir Gotham Platform transforms the received data into meaningful objects and the relationship that connects them. Analysts at intelligence and military organizations have widely been using Gotham for identifying hidden patterns inside the datasets to combat terrorism and general crime cases.

Palantir Foundry

Data fusion on large scale is a critical task to perform in the digital era. Palantir Foundry assist organizations in quickly performing end-to-end data transformation that helps them in redefining their businesses.

Foundry basically reinterprets the way people interact with the data by eliminating the barriers between front-end data assessment and back-end data handling. It allows users to connect and modify data into any desirable form and then utilize it to take decisions.

Palantir Apollo

Palantir Apollo platform handles and updates the company’s offerings. It is a continuous delivery system that powers its Gotham and Foundry platforms and deploy them in clouds, classified networks, devices etc. Apollo is intended for fulfilling clients need related to different public and private cloud platforms.

Investing in Palantir

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

Trading Palantir stock

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

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

Palantir CFDs

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

Palantir futures

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

Palantir spread betting

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

Palantir options

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

Palantir 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.

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

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

Buying Palantir 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.

Factors controlling the Palantir stock price

Whether you are looking to invest in Palantir stock for the short, mid or long-term, it is vital you know those factors that can affect the Palantir stock price. There are many factors that drive a stock’s movement including quarterly financial reports, economic conditions, and competition among many others. Here we will discuss some of the key factors behind Palantir shares movement.

Customer base

Palantir Technologies has a limited customer base i.e. it has just 125 clients and its top 20 clients’ accounts for almost 70 percent of its annual revenue. The company largely depends on contracts offered by the U.S. government and intelligence agencies, which makes it more vulnerable in terms of investment.

If the company loses any key government or non-government client, it could severely hurt its revenues, and as a result the company’s share price could take a serious hit. However, if Palantir manages to expand its customers base in future, it could turn profitable for the company, as more clients means more revenue opportunities.

Product demand

Palantir Technologies made a name for itself soon after its formation. In early 2000s, the company assisted the U.S. government in profiling terrorists following 9/11 attacks on the American soil.

Multiple organizations have used its data integration platform for preparing response to disaster. For instance, its software suite was used by the United States and United Kingdom governments to get a complete understanding about the distribution and spread of the coronavirus and the resources available to contain its spread.

The demand for the company’s services is expected to surge as the world faces unexpected challenges like COVID-19 among many other emerging problems that could be solved using Palantir’s software suite. The surge in demand for the company’s products is expected to drive its stock price.

Financial performance & analysts’ projections

Quarterly earnings and revenue, analysts’ ratings, and previous stock performance are among the key indicators that predict whether a company will do well in future. If Palantir Technologies managed to beat quarterly earnings and revenue estimates, its shares price is expected to go up.

However, quarterly performance alone is not enough for predicting growth of Palantir stock. Analysts ratings also help investors in making investment decisions, as they closely monitor a company’s performance considering all risks and growth opportunities. Stocks with better ratings tend to perform well in the market as compared to those with lower ratings.

How to trade Palantir stock online?

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

1.     Decide if trading Palantir stock is for you

Trading Palantir 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 Palantir stock online.

2.     Educate yourself

Before trading Palantir 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 Palantir 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 Palantir stock broker

In order to trade Palantir 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 Palantir

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

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

Is trading Palantir stock right for me?

Trading Palantir 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 Palantir 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 Palantir 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.

Relevant articles