How to buy and short NIO shares

How to go long on NIO shares

With us, you can "buy" NIO shares via derivative trading.

Derivatives, such as CFDs, enable you to speculate on positive share price movements without taking ownership of the underlying shares by going long.

You can trade in NIO shares even when the markets are closed – with our exclusive out-of-hours offering: you can trade from 9am to 1am Monday to Thursday, and 9am to 10pm Friday (UK time).

Follow these steps to "buy" NIO shares:

1. Create or log in to your trading account
2. Search for ‘NIO’ in the search panel
3. Choose your position size
4. Confirm the trade and monitor your position

You can speculate on the share price with derivates in order to:

• Get full exposure with a 20%-25% deposit on almost all of our tier one shares¹
• Hedge your positions with CFDs and offset any losses against potential profits

How to short NIO shares

You can go short on the NIO share price with derivatives such as CFDs to speculate on downward movements.

The benefits of short selling include the ability to profit from falling share prices, and the opportunity to hedge your existing investments or long positions that could decline in value given a drop in the NIO share price.

1. Create or log in to your trading account
2. Look for 'NIO' in the search panel
3. Choose your position size
4. Choose 'sell' in the deal ticket
5. Confirm the trade and monitor your position

NIO live market price

How to trade NIO out of hours

You can trade NIO out of hours, even when the markets are closed, with our exclusive extended trading times. If you want to trade NIO via CFDs, you can do so from 9am to 1am Monday to Thursday, and 9am to 10pm Friday (UK time).

NIO shares: the basics

NIO shares are listed on the New York Stock Exchange (NYSE) following an IPO on 12 September 2018. The company was valued at $6.4 billion upon listing, but the momentum its shares has gained since late May 2020 has pushed the carmaker’s market cap to more than $50 billion.²

The company’s shares have rallied by over 1200% from June to November 2020 and, at the time of writing (26 November 2020), sit at an all-time high. The speed of the rally risks leaving the stock overvalued, but this could be just the beginning of a sharp incline, as production and profitability are both on the rise.

What is NIO’s business model?

NIO’s business model is based on the design and manufacture of ‘connected, premium, electric vehicles’. Its current model and its ambitions both aim to cater to the premium SUV market, where there is very little competition. NIO outsources some of its manufacturing to established carmaker JAC Motors – helping the company to get cars to market at a quicker rate, and at a lower cost.

NIO has four models available (EP9, EC6, ES6 and ES8), four models in the pipeline (EF9, ES3, ET5 and ET7) and two concept models (ET Preview and Eve).

NIO key personnel: who manages the company?

NIO has six executives that manage the company. The key players are:

NIO also has five members on its board of directors:

How to analyse the NIO share price

Trading on NIO shares must always be based on a solid foundation of both technical and fundamental analysis. It’s important to study NIO’s financials and other factors that affect the business before using your capital to trade derivatives.

You should also analyse the health of the economy and its sectors, review news reports, study the competition, and gather all other relevant information before making a trading decision.

• Technical analysis is concerned with chart patterns, technical indicators and historical price action
• Fundamental analysis is based on the fundamentals of a company, including its net revenue or profit and loss statements

Some popular technical indicators are:

• RSI, which assesses the momentum of assets to gauge whether they might be overbought or oversold
• Moving averages, which can help to determine the direction of the current trend
• Stochastic oscillator, which enables you to identify the end of one trend and the beginning of another

Some popular fundamental metrics are:

• Earnings per share (EPS): determines how much money is made by a company for each of its shares. To calculate EPS, divide NIO’s profit by the number of outstanding shares
• Price-to-equity (P/E) ratio: outlines how much you need to spend on NIO shares to make $1 in profit. To calculate P/E, divide NIO’s current market value per share by its EPS
• Return on equity (ROE): measures how much income the company makes compared to shareholder investments. To calculate ROE, divide NIO’s net income by stakeholder equity
• Dividend yield: compares the company’s annual dividends to the share price. To calculate dividend yield as a percentage, divide the dividend amount by the share price, and then multiply by 100

Learn everything you need to know about fundamental analysis

Buying and selling NIO shares summed up

• With IG you can take a position on NIO shares via derivative trading
• Derivatives enable you to speculate on share price movements without taking direct ownership
• Trading NIO shares must always be based on a solid foundation of technical and fundamental analysis

Footnotes:

¹ Deposits on leveraged trades are 20%-25% for 99.14% of tier one shares (correct as of 1 June 2020). For more information, view our share trading margin rates
² Yahoo Finance, 2020