How To Buy Pinterest Stock
Welcome to Trading Brokers step by step guide to buying Pinterest stock. Here you will find an easy to understand explanation of trading Pinterest stock. This includes how to buy Pinterest shares online, what you need to trade Pinterest stock and how to open a trading account with a stock broker so that you can buy Pinterest stock online today.
Maybe you have heard of buying Pinterest 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 Pinterest stock can help you along your journey.
Overview of Pinterest
Pinterest Inc. (PINS), founded in 2009, is a visual discovery platform, where users can create theme-based picture collections and share their inspirations through images. Its image sharing platform works like a virtual pinboard, where people use pins to share different images and videos on themes that range from weddings and home decoration to food recipes and travel destinations.
The company has integrated its platform with image recognition technology that enable users to take pictures via their phones and provide relevant information to the object. Some of its famous Pins include Recipe Pins, Video Pins, and Shop the Look among many others. Users can explore Recipe Pins if they are planning to cook a dish by having relevant information including ingredients and required time, while Video Pins offer short videos base on the taste and interest of a user.
Pinterest offers marketing services to businesses, enabling brands to reach users on its platform based on their shared interests. It also allows enterprises to create pins in the form of organic content and paid ads.
Moreover, the company’s Product Pins allow users to shop a product with pricing detail and availability and provide links that redirects them to the checkout page of a brand. With the help of Shop the Look, users can buy items they see while exploring different pins such as fashion.
Opportunities and Risks
There are several opportunities and risks associated to the growth of Pinterest while going forward. Here we will discuss some of them.
Pinterest is continuously working to improve its platform. For instance, its working to enhance video and the reason is its more engaging than images, and users tend to re-pin videos more often than pictures.
The company is also making its platform more user friendly for shopping purposes. At the same time, it has launched more tools for businesses looking to advertise on its platform. If the company managed to keep helping businesses in gaining customers and making platform more relevant for users, it will ensure its success in the longer run.
Pinterest users base is increasing, but much of the surge is coming from the international markets, which means its revenue is not increasing according to its expanding user base. The reason is the company generates a significant portion of its revenue from the U.S., and overseas market account for a small chunk of its overall sales. Moreover, its average revenue per user (ARPU) in international markets is well below ARPU it generates in the U.S.
So, the big challenge for the company is to build an effective advertising model for the international users, otherwise its revenue generating capabilities are expected to reach the saturation point.
Pinterest is facing intense competition as its business model directly competes with big tech giants including Facebook and Google that dominate the digital ads market. Some other prominent names in the market include Twitter, Snap and ByteDance among many others. In short, the company needs to perform exceptionally well to keep growing in the market against such big names.
Investing in Pinterest
Investing in Pinterest stock is when you buy Pinterest shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy Pinterest stock in order to try and make a profit when the Pinterest stock price increases in value.
Trading Pinterest stock
Trading Pinterest stock is when a trader speculates on the movement in the Pinterest stock price without actually owning the shares in Pinterest. Traders tend to buy and sell Pinterest stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.
You can buy and sell Pinterest 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 Pinterest stock is via CFDs (contracts for differences). When trading Pinterest CFDs, you do not actually invest in Pinterest shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Pinterest 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 Pinterest will rise or short (sell) positions if they thought that the Pinterest 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 Pinterest 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 Pinterest 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. Pinterest investors can use futures trading to speculate on the price movement of Pinterest 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.
Pinterest spread betting
Spread betting is a financial derivative that enables traders to speculate on Pinterest 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 Pinterest stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.
Pinterest options are financial instruments that are derivatives based on the value of Pinterest’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 Pinterest 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.
Pinterest is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside Pinterest, may consider ETFs.
Where to buy Pinterest 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 Pinterest 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 Pinterest stock with relative ease. The cost involved to get started makes trading Pinterest 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 Pinterest stock to try and earn profit from the variation in Pinterest’s stock price. When trading Pinterest CFDs you can speculate long and short on prices rising or falling without actually needing to invest in Pinterest 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 Pinterest’s stock for a more long-term hold.
Buying Pinterest 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 Pinterest, it is important you understand the dynamics that affect the Pinterest stock price.
How to trade Pinterest stock online?
If you have taken the time to read through the above, you should hopefully have an understanding of how to trade Pinterest stock online. Here is a summary of the key steps:
1. Decide if trading Pinterest stock is for you
Trading Pinterest 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 Pinterest stock online.
2. Educate yourself
Before trading Pinterest 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 Pinterest 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 Pinterest stock broker
In order to trade Pinterest 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 Pinterest
If you have made it this far then you may be ready to start trading Pinterest stock online! The next step is to research Pinterest 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 Pinterest 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 Pinterest stock
Once you feel ready to trade Pinterest stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on Pinterest, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of Pinterest trades for the long-term, whereas traders may buy and sell Pinterest stock on a daily basis.
Is trading Pinterest stock right for me?
Trading Pinterest 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 Pinterest 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 Pinterest 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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