What is NIO Limited?
Founded in 2014, NIO Limited was initially named NextCar before it changed the name in 2017. The company headquarters are located in Shanghai, China. NIO Limited operates in the automotive industry and it designs and manufactures premium electric autonomous vehicles. The company is also in the business of offering battery charging services such as Power Home.
The company manufactures different models of vehicles such as five, six and seven-seater electric SUVs. Its product portfolio is composed of multiple models like EP9 supercar, ES8, ES6, and EC6. The products are sold through a well-established sales network composed of NIO houses, NIO spaces and a mobile application. NIO vehicles are offered to customers in the People's Republic of China, Hong Kong, the United Kingdom, Germany, and the United States. NIO Limited competes directly with the well-known Tesla Inc, which is also in the business of electric car manufacturing.
NIO Limited is also known for its IPO – it raised $1 billion in September 2018 when it became a publicly-traded company on the New York Stock Exchange (NYSE).
Performance of NIO stock price
NIO share price opened at around $6 (£4.55) per share on its IPO day and the price fluctuated between $5.4 (£4.9) to $6.86 (£5.2) during the trading session. NIO stock price recorded a significant increase during the next sessions when it made a movement to nearly $14 (£10.60). Afterwards, NIO share price began its steady decline until it hit a bottom price of around $1.32 (£1) at the beginning of October 2019. NIO stock price continues to move within a range until the end of the first quarter in 2020. NIO share price broke out the range movement during the second quarter of 2020 and started to fluctuate in an upward trend, reaching a record high price of above $50 (£37.9) while closing at around $44 (£33) in November 2020.
The daily price chart shows that NIO share price may fluctuate over 20 per cent depending on movements in the factors that affect the company value. Traders may experience fluctuations of up to 10 per cent during a trading session. After breaking out from the range-bound movement, NIO share price shows the potential to move more than 30 per cent within a week.
How to invest in NIO stock with tokenised assets
Dzengi.com utilises blockchain technology features for the creation of smart contracts, swift execution of transactions and the possibility to lower transaction costs while ensuring a high level of security.
Asset tokenisation creates tokenised assets that track the price movements of the underlying asset, enabling traders to profit from taking appropriate positions. The requirement to own the specific security to benefit from changes in the asset’s value is excluded from the trading process.
Tokenised assets make it easier for traders to invest in NIO stock and benefit from potential changes in NIO share price since they no longer need to buy or sell NIO shares on the stock exchange where the company is listed. They can speculate on future price movements by trading tokenised shares in the same way as it is the case when directly trading the underlying asset. Traders buy tokenised assets when prices are expected to increase, while the tokenised assets are sold when the price may fall. Traders have the possibility to invest in NIO stock with crypto if they own Bitcoin or Ether without the need to exchange these cryptocurrencies for fiat money.
Dzengi.com provides the possibility for clients to trade tokenised NIO shares with a margin as low as 5 per cent. Such a low margin means that traders need to cover only a portion of the position value. For instance, if you want to open a position of $20,000 (£15,157) with tokenised NIO shares, you should have sufficient capital to cover only 5 per cent of the value or $1,000 (£757). Keep in mind that potential profits are earned on the overall position value of $20,000.
Tokenised NIO stock trading guide
The steps involved in NIO stock trading through tokenised assets are easy to comprehend. You can trade tokenised shares by going through the next steps:
- 1. Locate the sign-in button on Dzengi.com and open your trading account
- 2. You can deposit your account with fiat money or you can choose to fund the account with Bitcoin or Ether
- 3. Define the value of your trading position based on the margin provided by Dzengi.com
- 4. Select whether a long or short position will be taken with tokenised NIO shares. After the execution of trading positions, Dzengi.com links the short and long positions from clients while unmatched positions are hedged through Capital.com or LMAX Digital as well as Binance, Bitstamp, Kraken, NASDAQ, NYSE and Gain Capital.
- 5. The positions can be closed at any time either directly or by defining a take-profit order. Dzengi.com gives traders trading with crypto the opportunity to withdraw their funds in the relevant cryptocurrency.
Why trade tokenised NIO shares with Dzengi.com
Tokenised stock trading on Dzengi.com has a number of advantages. Tokenised assets 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 NIO shares with Bitcoin or Ethereum. Benefit from the stock’s price movements without turning your crypto assets into fiat.
- Tight spreads
Trade tokenised NIO stocks with a tight market spread, benefit from maker rebates and competitive taker fees.
- Leverage
Experienced traders can trade the world’s top markets, like NIO, 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
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.
