How To Buy Peloton Stock

How To Buy Peloton Stock

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

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

Overview of Peloton

Peloton Interactive Inc. (NASDAQ: PTON), founded in 2012, is engaged in manufacturing and selling interactive fitness products. Its main products include Peloton Bike and the Peloton Tread that comes with a touchscreen, allowing users to participate in the online classes streamed from the fitness studio of the company.

The New York-based exercise equipment and media company also offers connected fitness subscription option to its customers, providing them access to live and on-demand fitness videos. Moreover, subscribers can also download and install Peloton Digital app to access classes.

Peloton, having more than 3 million members, markets and sells its product through its retail showrooms and online platform onepeloton.com. The company claims that its fitness products are entertaining, accessible, efficient, and convenient.

The company produces more than 950 original programs on monthly basis and maintains a rich library of unique fitness programs. Its highly qualified instructors cover a wide range of fitness topics including cycling, running, meditation and yoga among many others.

Key segments

Peloton operates and manages its operations mainly through three segments.

Connected fitness product segment

The segment generates revenue by selling bikes, treadmills, and related accessories. It also charges clients for delivery and product installation, and extended warranty agreements.

Subscription segment

The segment generates revenue by charging users for live studio classes and monthly subscription.

Other segments

The company’s other segment makes money by selling Peloton branded apparels.

Factors that move the Peloton stock price

Whether you are in for the short, mid or long-term, it is vital you know those factors that can affect the Peloton stock price. Peloton’s growth highly depends on its products performance and user base. Here are some of the key factors that should be consider before making an investment decision related to Peloton stock.

Growing fitness trends

People are increasingly become fitness conscious that has helped Peloton model to become famous. The growing self-care needs among communities around the world is offering opportunities to companies like Peloton, which provides fitness at the tap of a touchscreen. The company’s interactive fitness products offer workout sessions with online instructors that makes the exercise entertaining and productive at the same time.

Peloton can boost its revenue by capitalizing on increasing demand for fitness and wellness products in the United States and worldwide.

Customer base

Peloton primarily makes money through its subscription-based model. Its user-base is its key asset if we talk about the company’s growth in the longer run. However, its customers growth depends on the quality of products and services offered. The company has been doing well so far. It claimed to achieve a retention rate of more than 90 percent, with average users completing 9 out of ten workouts on monthly basis.

However, with every opportunity, there are some associated risks. The company’s business model might collapse if it failed to add more subscribers or retain them in the coming time.

Products

The company’s key products are costly as compared to other available products in the market. The company needs to roll out more affordable fitness machines over time to target customers with relatively low budget. If Peloton managed to do that, it will help company in expanding its user base and generate more revenue.

Investing in Peloton

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

Trading Peloton stock

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

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

Peloton CFDs

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

Peloton futures

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

Peloton spread betting

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

Peloton options

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

Peloton 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.

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

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

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

How to trade Peloton stock online?

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

1.     Decide if trading Peloton stock is for you

Trading Peloton 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 Peloton stock online.

2.     Educate yourself

Before trading Peloton 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 Peloton 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 Peloton stock broker

In order to trade Peloton 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 Peloton

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

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

Is trading Peloton stock right for me?

Trading Peloton 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 Peloton 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 Peloton 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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