How To Buy UPS Stock

How To Buy UPS Stock

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

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

Overview of UPS

United Parcel Service Inc. (UPS), founded in 1907 by James Casey, is a package delivery and supply chain management organization operating in the U.S. and internationally. The Atlanta, Georgia-based shipping giant generates revenue from a range of transportation and shipping facilities that can be classified into three key segments.

U.S Domestic Package

It is the biggest segment that is engaged in offering cost affordable delivery services to businesses and individual customers across the United States and Puerto Rico.

International Package

The segment is responsible for delivering documents and packages to over 220 countries and regions across the world.

Supply Chain & Freight

UPS supply chain runs logistic operations in over 195 countries and regions around the globe. It includes supply chain management, freight delivery, mail, and consulting services. On the other hand, UPS Freight, which is a less than truck load (LTL) service, operates in the U.S, Canada, Mexico, Virgin Islands, Guam, and Puerto Rico.

Factors controlling growth of UPS

Here we will discuss some key indicators that can drive UPS growth in future.

Business model and massive reach

UPS is the world’s biggest express carrier and provider of package delivery services. It is mainly engaged in delivery of packages globally. Individual and enterprise customers use its services to send their packages.

The company has an extensive reach, as it covers nearly 220 countries spread across the world. Besides delivering packages and documents, the company also offers supply chain management and truckload shipping services. Moreover, it operates a fleet of about 123,000 vehicles that cover all residential zip codes in the United States. The company also owns an air fleet of nearly 600 aircrafts.

The massive size and extensive reach of UPS makes it a top preference among people and businesses looking to send and receive their packages. It also allows company to better compete with rivals in the package delivery space.

Revenue generating opportunities

The company operates in nearly all parts of the world, delivering millions of packages, and generating a large amount of revenue. Being an established player in the delivery space, the company is well set to boost its revenue in the coming years. However, its success greatly depends on maintaining the quality of its services.

Investments

UPS must make investments to adopt the latest technologies in the increasingly digital world. For instance, people have started preferring same-day deliveries when they make a purchase using an online platform. To address the shift in people preferences related to delivery services, the company needs to transform itself to retain its customer base.

Competition

UPS mainly competes with FedEx, and DHL among others in the package deliver market. However, there are some differences in the offerings of its competitors. For instance, FedEx generates most of its revenue from its express delivery service. The specialty of FedEx is to deliver packages as quickly as possible. On the other hand, UPS is famous for its domestic ground delivery services. Looking forward, UPS can further boost its market share by improving its express delivery services.

Investing in UPS

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

Trading UPS stock

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

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

UPS CFDs

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

UPS futures

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

UPS spread betting

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

UPS options

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

UPS 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.

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

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

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

How to trade UPS stock online?

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

1.     Decide if trading UPS stock is for you

Trading UPS 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 UPS stock online.

2.     Educate yourself

Before trading UPS 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 UPS 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 UPS stock broker

In order to trade UPS 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 UPS

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

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

Is trading UPS stock right for me?

Trading UPS 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 UPS 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 UPS 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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