How to buy and short Oatly shares
Oatly, a Swedish food brand, joined the growing list of publicly traded vegan stocks in 2021. Discover how to get exposure to Oatly with us in this guide.
How to buy Oatly shares: investing or trading
You can either buy and own physical Oatly shares (investing) or speculate on its share price, predicting whether it will rise or fall (trading).
Investing in Oatly shares
Investing in Oatly’s shares gives you direct ownership of them, making you eligible to receive dividends if the company happens to grant them. Plus, you’ll have voting rights as a shareholder. With us, you can own physical Oatly shares from zero commission.1
You can become a Oatly shareholder in these steps:
- Create an account or log in
- Search for ‘Oatly’ on our share trading platform
- Select ‘buy’ in the deal ticket
- Choose the number of shares you want to buy
- Open and monitor your investment position
Here’s how our commission rates compare against those of our competitors:
IG | Hargreaves Lansdown | AJ Bell | |
Best commission rate on US shares | Free | £5.95 | £4.95 |
Standard commission rate on US shares | £10 | £11.95 | £9.95 |
FX conversion fee | 0.7% | 1.0% | 1.0% |
Best commission rate on UK shares | £3 | £5.95 | £4.95 |
Standard commission rate on UK shares | £8 | £11.95 | £9.95 |
How to qualify for the best rate | Open 3 or more positions on your share trading account in the previous month | 20 or more trades in prior month | 10 or more trades in prior month |
Data as captured on 10 February 2021
To buy and own Oatly shares, your initial outlay must be the full value of your investment. With a possible rise and fall in the share price, you may get back less than the amount you committed. However, potential losses are capped at your total initial outlay (excluding additional fees).
You’ll make a profit if the company offers dividends or if you sell the shares when the share price is higher than the original buy price, or both.
Trading Oatly stock
Trading Oatly stock means that you’re speculating on the price movements of the company’s share price without owning the underlying assets. If you think that the share price will rise, you’ll ‘buy’ (go long) and if you think it will fall, you’ll ‘sell’ (go short).
With us, you can trade Oatly shares in these steps:
- Create an account or log in
- Search for ‘Oatly’ on our trading platform
- Select ‘buy’ to go long or ‘sell’ to go short in the deal ticket
- Set your position size and take steps to manage your risk
- Open and monitor your position
When trading with us, you’ll use leveraged derivatives such as CFDs, and you may be eligible to receive certain tax benefits.2
Trading with leverage means that you can get full exposure while only committing a deposit called margin. It’s vital that you manage your risk as leverage can magnify both your possible profits and losses to the full value of your position.
How to short Oatly shares
You can short Oatly shares using CFDs with us. Short-selling is a way for you to potentially profit (or make a loss) from a drop in share price by selling (going short on) the underlying shares rather than buying (going long).
With us, you can short-sell in these steps:
- Create an account or log in
- Search for ‘Oatly’ on our platform
- Select ‘sell’ in the deal ticket
- Choose your position size
- Open and monitor your position
If you think that the Oatly share price will drop, you’d take a short position. If your prediction is correct, you’d make a profit. If incorrect, you’d make a loss.
Remember, CFDs are leveraged, meaning you’d pay an initial deposit that’s a percentage of the full value of your position, but both possible profits and losses are magnified to the full value of your trade.
How to sell or close your Oatly position
You can sell your Oatly investment or close your trade in these steps:
Selling your Oatly investment
- Log in and go to the trading account where you placed the trade
- Go to the positions tab and select ‘Oatly’
- Select ‘sell’ in the deal ticket
- Choose the number of shares you want to sell
- Close your position
Closing your Oatly shares trade
- Log in and go to your share trading account
- Go to the positions tab and select ‘Oatly’
- Select ‘sell’ in the deal ticket
- Choose your position size
- Close your position
A brief history of Oatly
Oatly was founded in 1992 by a sustainability-focused food scientist Rickard Öste – this marked the development of oat milk. In 1994, the company started selling it in Sweden. The Oatly brand is currently available in over 20 countries.
A stake of the company worth $200-million was sold to Blackstone Group in 2020. In its May 2021 Nasdaq listing, Oatly was targeting a valuation of $10 billion, but its market cap shot up to $13 billion at the end of its first trading day.
What’s the Oatly business model?
The Swedish food brand produces milk alternatives and a range of other organic products and sells it in over 20 countries.
The rise in oat milk popularity has caused a significant growth in sales in the plant-based milk category. As a result, the Oatly brand is currently available in over 20 countries.
Oatly share price: how to analyse the Oatly share price
You can analyse Oatly shares using two methods – technical and fundamental analysis – however a combination of the two is usually more useful.
- Technical analysis comprises of chart patterns, technical indicators and historical price action that can help you predict future price movements
- Fundamental analysis entails elements such as a company’s net revenue, profit and loss statements, as well as wider macroeconomic factors, that can help you in determining likely share price movements
Footnotes:
1 Commission rates differ for UK and US shares. Trade in your share trading account three or more times in the previous month to qualify for our best commission rates. Please note published rates are valid up to £25,000 notional value. See our full list of share trading charges and fees.
2 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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