What is IBM?
International Business Machines Corporation, as it is formally known, is an American multinational technology company founded in 1911 and based in New York, and is one of the oldest names in computing.
From its early days producing mainframe computers, ‘Big Blue’ has designed, produced and sold computing hardware, software and corporate consulting services and has recently entered the cloud computing arena.
IBM employs a ‘fabless’ production model which means that while it engineers its products in house, all construction activities are outsourced to third parties.
IBM has held the record for most US patents for over 28 years, and prior to the 2000s the company was able to translate this inventive engineering prowess into a continually shifting market development strategy. The company was able to continuously improve and evolve in such a way that it remained one step ahead of the competition while increasing profit margins on new technology.
This business model has suffered in the past decades in the wake of the ever-increasing pace of change, first to the adoption of networked desktop PCs and more recently the rapid shift to online and cloud computing, both of which put IBM at a disadvantage. However the company has strong belief in its ability to shift its focus to cloud computing infrastructure and improve revenue in the coming years.
Performance of IBM stock price
IBM stock price history data shows that the company has traded within the 52-week range of $105.92 and $137.07 at an average volume of 134 million trades per month. The IBM stock price chart shows there have been seven stock splits in the history of the company, with the most recent being a two-for-one split in 1999.
Recently, the company has struggled to keep pace with disruptive start-ups fuelling the shift towards more affordable online computing solutions. A large portion of past revenue came from bundling more expensive hardware and consulting packages with initial software contracts, and this business has evaporated over the course of the past decade.
As a result, net income has fallen by more than half in the period between 2016 and 2020. IBM is in the midst of spinning off unprofitable business lines in an effort to increase agility and boost lagging revenues.
How to buy IBM stock
IBM trading takes place on the New York Stock Exchange. Those looking to buy IBM stock can purchase it directly through the exchange, through a broker or indirectly through an index which includes IBM, such as the S&P 500. Traders are also able to buy derivatives based on the current IBM share price such as CFDs or options.
Traders looking to buy IBM stock using the Dzengi.com tokenised platform are able to profit from upward or downward movements in the IBM stock value without having to invest directly. Tokenised assets are crypto derivatives whose value is linked to the value of a particular asset, in this case the IBM share price.
The token is registered using distributed ledger technology (DLT) in the same way cryptocurrency is recorded. This technology allows for trading using crypto without the need to convert back and forth with fiat currency, saving exchange fees. The use of this technology allows tokenised asset trading to be efficient, inexpensive and secure.
When trading tokenised assets based on the IBM stock price you can take a long or short position depending on whether you feel the price today is over or under-valued based on the price chart. If you think the IBM share price will decrease you can take a short position and if you think it will increase you can take a long position. Trading in tokenised securities on Dzengi.com also allows traders to benefit from the leverage offered on the platform, up to 1:20 leverage.
Why trade tokenised IBM shares with Dzengi.com?
Trading tokenised IBM shares on the Dzengi.com tokenised assets exchange has a number of advantages. Tokens are underpinned by robust and immutable blockchain technology. Opening a trade will give you a token that tracks and moves according to the underlying instrument's price.
- One-stop crypto trading platform
- Tight spreads
Trade tokenised shares with a tight market spread, benefit from maker rebates and competitive taker fees.
Experienced traders can trade the world's top stocks, like IBM, with up to 1:20 leverage.
- Effective risk management
Manage your risks and secure your profits with stop loss and take profit orders. Save your assets with negative balance protection.
- Instant order execution
Dzengi.com has a scalable and low latency order management system, which can execute 50 million trades per second.
- Safe regulation
Dzengi.com operates under new Belarusian regulation with best-in-class AML and KYC laws. Regulatory details and fees are upfront.
Tokenised shares trading guide
Trading tokenised IBM shares is no more difficult than regular shares. To begin trading tokenised assets, you will need to follow some simple steps:
- 1. Register for an account with Dzengi.com.
- 2. Deposit funds (with crypto or fiat) in the account.
- 3. Determine the position size desired, accounting for leverage offered by Dzengi.com.
- 4. Determine your trading position (long or short) based on expected price movement and purchase tokenised IBM shares.
- 5. Dzengi.com matches the long orders from its clients with the sell orders and then hedges the unmatched orders through Capital.com, LMAX Digital or exchanges such as Binance, Bitstamp, Kraken, NASDAQ, NYSE, and Gain Capital.
- 6. Close your position when applicable. You can set a take profit or stop loss indicator to ensure you are not required to constantly monitor the price. Funds will deposit back to your account after closing and you can withdraw or take a new position.