How to buy and short Made.com shares
Made.com, a designer homeware and furniture company, has an AI strategy to match supply to demand. Discover how to get exposure to Made.com with us in this guide.
How to trade Made.com shares
Trading Made.com 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 Made.com shares in these steps:
- Create an account or log in
- Search for ‘Made.com’ 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.
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.
Discover more about the impact of leverage on trading
How to short Made.com shares
You can short Made.com 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 ‘Made.com’ on our platform
- Select ‘sell’ in the deal ticket
- Choose your position size
- Open and monitor your position
If you think that the Made.com 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 close your Made.com position
You can close your Made.com trade in these steps:
- Log in and go to your share trading account
- Go to the positions tab and select ‘Made.com’
- Select ‘sell’ in the deal ticket
- Choose your position size
- Close your position
A brief history of Made.com
The company was established by businessman Ning Li in 2010 with co-founders Brent Hoberman, Julien Callède and Chloe Macintosh. Aiming to fill a gap in the market, the idea was sparked when he realised that he could by a couch for twelve times less at the factory price.
An initial investment of £2.5 million got the company going, and a year later, it was selling furniture worth £25,000.
In 2017, Li stepped down as chief executive officer (CEO), passing the baton over to Philippe Chainieux, who joined as the chief financial officer (CFO) in 2013.
Chainieux stated that the company had a vast increase in sales due to the sudden, widespread shift to digital as result of Covid-19 lockdowns, noting that customers were buying home office furniture in the numbers.
What’s the Made.com business model?
Made.com designs and sells designer retail homeware and furniture digitally, and on site across Europe in networked showrooms. The company uses artificial intelligence (AI) to gauge whether an item is likely to sell by utilising existing customer data such as online reviews. In turn, this means consumers pay less as supply and demand is more balanced.
Made.com share price: how to analyse the Made.com share price
You can analyse Made.com 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
This information has been prepared by IG, a trading name of IG Markets Limited. 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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