What is JD.com Inc?
JD.com is a Chinese e-commerce company headquartered in Beijing. The company was formerly known as 360buy and is sometimes referred to within China as Jindong. They are the largest online retailer and largest overall retailer in the Chinese marketplace and a major competitor of the Alibaba group. The company was founded in 1998 by Liu Qiandong as a brick-and-mortar retail store and he is still the largest single shareholder, with just over 15 per cent. During the SARS outbreak of 2003, Liu realized there was a huge opportunity for online retail as people were hesitant to visit public shopping areas. He moved the company online and closed the physical storefront in 2004. JD.com went public in 2014 when it listed on the NASDAQ exchange in the United States.
JD.com is a holding company which operates two main segments. The retail segment offers online retail consumer shopping as well as a platform for a vast network of third-party merchants. It provides marketing services as well as online display advertising for a large number of these third-party merchants. The new business segment specialises in providing logistics services to its merchant network, customers, and overseas companies including warehousing, transportation, delivery and after-sales supports. It also provides asset management services to property managers.
JD.com has benefitted from strategic partnerships throughout its history, most notably with Walmart and Tencent. While the partnership with Walmart granted access to a huge number of imported products, the Tencent partnership allowed for exclusive access to the WeChat and QC proprietary platforms.
Performance of JD.com stock price
The JD.com share price has risen steadily throughout 2020 benefitting from the uptick in online shopping brought on by the coronavirus pandemic. It is fitting that the company would be experiencing such a period of rapid growth at this time, given that the company was formed as a response to the SARS outbreak. The JD.com share price has benefitted both from the increase in online shopping and from strategic partnerships with foreign companies which have allowed increased access to imported goods for Chinese consumers.
As of late 2020, the JD.com share price has traded within the 52-week range of $32.73 – $92.74, with a market cap of over $131bn. JD.com stock trading has an average volume of almost 12 million shares per day.
How to invest in JD.com stock?
JD.com stock trading occurs on the NASDAQ Stock Exchange. Those looking to invest in JD.com stock would purchase them directly through the exchange, through a broker or indirectly through an index which includes JD, such as the NASDAQ 100. Traders are also able to purchase derivatives based on JD shares such as CFDs or options.
Traders looking to invest in JD.com stock by using the Dzengi.com tokenised platform are able to profit from upward or downward movements in the JD.com share price 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 JD.com share price. The token is registered using distributed ledger technology (DLT) the same way cryptocurrency is recorded. This technology allows for trading using crypto without the need of converting back and forth with fiat currency, saving exchange fees. The utilisation of this technology allows for tokenised asset trading to be efficient, inexpensive and secure.
When trading tokenised assets based on the JD.com 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 JD.com stock price will decrease, you can take a short position. If you think it will increase you can take a long position. Trading in tokenised assets on Dzengi.com also allows for traders to benefit from the leverage offered on the platform, up to 1:500 leverage.
Why trade tokenised JD.com shares with Dzengi.com
Trading tokenised JD.com shares at 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
Trade tokenised JD.com shares with Bitcoin or Ethereum. Benefit from the share price movements without exchanging your crypto assets into fiat.
- Tight spreads
Trade tokenised shares with a tight market spread, benefit from maker rebates and competitive taker fees.
- Leverage
Experienced traders can trade the world's top stocks, like JD, with up to 1:500 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
We have 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 JD.com 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 JD.com 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.
