How to buy and short Trustpilot shares
Trustpilot, a leader in the online review space, takes a proactive approach to combatting fake reviews on its platform. Read on to discover how to buy and own, or trade, Trustpilot shares.
How to buy Trustpilot shares: investing or trading
You can buy Trustpilot shares through outright investing in the stock, which gives you direct ownership, or you can trade the company’s shares by speculating on its price movements without having to own the underlying.
Investing in Trustpilot shares
Investing in Trustpilot’s shares means that you become its owner. As a shareholder you’ll have voting rights and be eligible to receive dividends, if the company offers them.
Buying Trustpilot shares outright means that you need to commit the full investment value upfront. The share price can swing in either direction, so you may get back a lesser amount than your initial outlay – but your maximum potential losses can’t exceed your total investment amount (excluding additional fees).
You can profit if Trustpilot happens to offer dividends or if you sell your shares at an increased share price (compared to the one you bought them at), or both.
Trading Trustpilot stock
Trading Trustpilot stock means that you’re taking a position on the company’s share price, whether it’ll rise or fall, without having direct ownership of the underlying. You’d ‘buy’ (go long) if you think that the share price will rise and you’d ‘sell’ (go short) if your prediction is that it’ll fall.
We enable you to trade Trustpilot shares in these steps:
- Create an account or log in
- Search for ‘Trustpilot’ 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
With us, you’ll trade Trustpilot shares using leveraged derivatives such as CFDs.
Using leverage when trading means that you only need a small deposit, known as margin, to open your positions, while getting full exposure. Leverage increases both your possible profits and losses to the full value of the trade, so it’s important to take steps to manage your risk properly.
Learn more about the impact of leverage on your trading
How to short Trustpilot shares
You can short Trustpilot shares via CFD trading with us. Short-selling means that you’re taking a ‘selling’ position (going short) on a company’s shares in an effort to make a profit from a falling share price.
With us, you can short-sell in these steps:
- Create an account or log in
- Search for ‘Trustpilot’ on our platform
- Select ‘sell’ in the deal ticket
- Choose your position size
- Open and monitor your position
Naturally, the share price could go either way – therefore, you’d incur a loss if it rises when you’re short-selling. But if your prediction that it’ll fall is correct, you’d make a profit.
As you’d be using CFDs when short-selling, you’d be trading with leverage. So, you’d need to commit an initial deposit to get full exposure to your selected position size of Trustpilot shares. But remember, when trading with leverage, both possible profits and losses are increased to the full value of your trade.
How to sell or close your Trustpilot position
You can sell your Trustpilot investment or close your trading position if you want to limit potential losses or secure possible profits. Here’s how:
Selling your Trustpilot investment
- Log in and go to the trading account where you placed the trade
- Go to the positions tab and select ‘Trustpilot’
- Select ‘sell’ in the deal ticket
- Choose the number of shares you want to sell
- Close your position
A brief history of Trustpilot
Trustpilot was founded in 2007 by Peter Holten Mühlmann, its current chief executive officer (CEO). The company connects businesses and customers to increase trust and transparency, and enables collaboration through honest reviews.
Between 2008 and 2010, Trustpilot raised $3 million in early funding. In 2011 and 2012, the company received funding from several investors. A year later, the New York and London offices started operating. By 2014, the company had around 400,000 monthly reviews and 325 employees.
By the end of 2020, Trustpilot had hosted 120 million reviews on its website. With a higher demand for its online services amid the Covid-19 lockdowns, the company’s 2020 revenue of $101.9 million is 25% more than its revenue for the previous year.
Trustpilot went public in March 2021, raising £473 million and reaching a valuation of around £1.1 billion.
What’s the Trustpilot business model?
Most of Trustpilot’s revenue comes from clients subscribing to its online services – the rest comes from advertising.
Trustpilot share price: how to analyse the Trustpilot share price
You can analyse Trustpilot shares in one of two ways – technical or fundamental analysis – but a combination of the two is generally more effective.
- Technical analysis consists of chart patterns, technical indicators and historical price action that is useful in predicting future price movements
- Fundamental analysis takes elements such as a company’s net revenue, profit and loss statements, as well as wider macroeconomic factors into consideration – these can help you determine likely share price movements
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The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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