What is Royal Dutch Shell plc?
Royal Dutch Shell plc, commonly referred to as Shell, is an Anglo-Dutch energy and petrochemicals company headquartered in Holland and incorporated in England. The company was formed in 1907 through the merger of the Royal Dutch Petroleum Company of Holland and the Shell Transport and Trading Company of the UK. Since that time, Shell has grown to become one of the world’s oil and gas “supermajors”. In 2019 Shell was listed as the largest energy company and ninth largest company overall by the Forbes Global 2000, which ranks companies based on sales, profits, assets and market value.
Shell is a vertically integrated company divided into four distinct business units: upstream operations; integrated gas; new energies; and downstream. Through these four units the company is involved in every sector of the oil and gas industry as well as more recently the growing renewable energy industry.
The current stated strategy of Royal Dutch Shell plc is “to strengthen their position as a leading energy company by providing oil, gas, petrochemical products and low-carbon energy to service increasing global demand”. The Shell share price is impacted significantly by global demand for oil and gas as well as geopolitical events surrounding oil production.
Performance of Shell stock price
The Shell stock price plummeted in 2020. The coronavirus pandemic crippled demand at a time when oil prices were already trending downwards due to overproduction. Storage facilities quickly reached capacity and health restrictions increased the operating costs of the business resulting in an unprecedented downturn for the global energy giant. The Shell share price was down more than 61 per cent a 52-week period ending in late 2020.
Investors who trade Shell stock are optimistic regarding the future performance of the Shell share price as the company continues to invest heavily in cleaner energy production and distribution. One of the companies stated objectives is to meet the increasing demand for a cleaner yet convenient and competitive energy supply.
How to invest in Shell stock
It is possible to invest in Shell shares on three major exchanges located in Amsterdam, London and New York. The ticker symbol and price chart shown above are quoted in EUR and are listed on the Euronext, Amsterdam. Those looking to invest in Shell shares can purchase them directly through an exchange or indirectly through an index which includes RDSA. Traders are also able to purchase derivatives based on RDSA stock such as CFDs or options.
Traders using the Dzengi.com tokenised trading platform are able to profit from upward or downward movements in the Shell 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 Shell 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 stocks 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 Shell 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.
Why trade Shell stock with Dzengi.com
Trading tokenised Shell shares at Dzengi.com tokenised assets exchange 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 Shell shares with Bitcoin or Ether. Benefit from the stock’s price movements without exchanging your crypto assets into fiat.
- Tight spreads
Trade tokenised stocks with a tight market spread; benefit from maker rebates and competitive taker fees.
- Leverage
Experienced traders can trade the world’s top stocks, like RDSA, 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 Shell shares is no more difficult than regular stock. To begin trading tokenised assets, you will need to follow a few 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 the leverage offered by Dzengi.com.
- 4. Determine your trading position (long or short) based on expected price movement and purchase tokenised Shell shares. Dzengi.com matches the long orders from its clients with the sell orders and then hedges the unmatched orders through Capital.com or LMAX Digital, or exchanges such as Binance, Bitstamp, Kraken, NASDAQ, NYSE and Gain Capital.
- 5. 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.
