How to buy, sell and short NIO shares
NIO shares are gaining popularity around the world. Learn how you can get exposure to this Chinese automotive company that’s paving a new way for electric cars to enter the premium vehicle market.
How to buy or invest in NIO shares
There are two ways to buy NIO shares: derivatives trading and share dealing (investing).
Derivatives, such as CFDs and spread bets, enable you to speculate on positive share price movements without taking ownership of the underlying shares by going long. Alternatively, if you want to own the shares directly you can invest via share dealing. When you invest you could also receive dividend payments, if the company offers them.
With us, you can trade and invest in NIO shares even when the markets are closed – with our exclusive out-of-hours offering. If you use CFDs and spread bets, you can trade from 9am to 1am Monday to Thursday, and 9am to 10pm Friday (UK time). If you invest, you can buy shares from 12pm to 10.30pm Monday to Thursday, and 12pm to 10pm Friday (UK time).
Follow these steps to trade or invest in NIO shares:
Investing in NIO shares
- Create or log in to your share dealing account
- Search for ‘NIO’ in the search panel
- Choose whether you want to deal ‘at quote’ or ‘on exchange’
- Enter the number of shares you want to buy
- Buy the shares and monitor your investment
Trading NIO shares
- Create or log in to your trading account
- Decide whether you want to trade spread bets or CFDs
- Search for ‘NIO’ in the search panel
- Choose your position size
- Confirm the trade and monitor your position
Discover the differences between trading and investing
How much would it cost to invest in NIO?
NIO has a primary listing on the New York Stock Exchange (NYSE), which makes it eligible for our best commission on US shares – available to clients who opened three or more positions on their share dealing account in the previous month.
| Name | FX conversion fee | US best commission | US standard commission |
| IG | 0.5% | £0 | £10 |
| Hargreaves Landsdown | 1.0% | £5.95 | £11.95 |
| AJ Bell | 1.0% | £9.95 | £9.95 |
If you don’t want to take ownership of NIO shares, 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
- Trade spread bets without paying any tax2
- Hedge your positions with CFDs and offset any losses against potential profits
How to sell and short NIO shares
You can sell NIO shares with us, even if you bought them through another provider. Simply transfer them to us, free of charge. Or, if you don’t own the physical shares to sell, you could go short on the NIO share price with derivatives such as CFDs and spread bets 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.
Selling NIO shares
- Create or log in to your share dealing account
- Go to your open positions and click on the 'NIO'
- Select 'sell' in the dealing tab
- Enter the number of shares you wish to sell
- Confirm the sale and browse other opportunities
Shorting NIO shares
- Create or log in to your trading account
- Look for 'NIO' in the search panel
- Choose your position size
- Choose 'sell' in the deal ticket
- 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 or spread bets, you can do so from 9am to 1am Monday to Thursday, and 9am to 10pm Friday (UK time). If you want to buy or sell physical NIO shares, you can do so from 12pm to 10.30pm from Monday to Thursday, and 12pm to 10pm on a Friday (UK time).
Learn more about out-of-hours trading
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.3
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:
| Bin Li | Founder, chairman and chief executive officer |
| Lihong Qin | Co-founder, director and president |
| Feng Shen | Executive vice president and chairman of quality management committee |
| Xin Zhou | Executive vice president and chairman of product committee |
| Wei Feng | Chief financial officer |
| Ganesh V. Iyer | Managing director of NIO US and global chief information officer |
NIO also has five members on its board of directors:
| Bin Li | Founder, chairman and chief executive officer |
| Lihong Qin | Co-founder, director and president |
| Hai Wu | Independent director |
| Denny Ting Bun Lee | Independent director |
| James Gordon Mitchell | Director |
How to analyse the NIO share price
Buying or selling 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 deal shares or 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 or investment 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
- There are two ways to take a position on NIO shares – derivatives trading and share dealing
- Derivatives enable you to speculate on share price movements without taking direct ownership
- Share dealing enables you to own the underlying shares and receive possible dividend payments
- You can buy NIO shares from just £0 commission with us
- Buying or selling 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 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
3 Yahoo Finance, 2020
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. See full non-independent research disclaimer and quarterly summary.
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