The methods for investing in Ferrari shares, i.e. shares issued by the Ferrari company, are different. Such shares, for example, can be bought with the aim of reselling them in the short term or in the long term after a few years. Still, there is another big difference in the field of equity investment, namely between traditional buying and trading online with CFDs.
In this article, in particular, we will see how you can invest in Ferrari shares with Plus500, a broker well known internationally, which allows you to trade on the stock exchange in a completely safe and transparent, operating directly from home or from your mobile device, with the help of any Internet connection.
If you need instructions, feel free to consult our Plus500 tutorial.
Plus500 is a world-renowned broker, which can boast the widest range of stocks on the market. It offers more than 2000 stocks, including all the most relevant, listed on the world’s leading stock exchanges. In particular, it offers over 1000 shares listed on Wall Street (New York) and as many of all the other European and global stock indices such as the Italian FTSE MIB in Milan, in addition to the indices of Paris, London, Frankfurt, Madrid, Singapore, Tokyo and many others.
It should also be noted that many other platforms such as Ferrari shares are missing on many platforms, but it is easy to operate on Plus500.
To view a more extensive list, simply go to the stock section of the Plus500 website, where you can view the over 2000 stocks available.
How to trade stocks on Plus500
Trading Ferrari stocks on Plus500 is really very simple. The Plus500 platform is very well organized, with clear and clean graphics, well organized. Even those who run it for the first time will have no difficulty in finding the stock on which they want to trade.
In fact, if, for example, we wanted to trade Ferrari shares on Plus500, we would simply have to:
- Enter the “Shop” screen
- Choose the category Actions
- Select the possible sub-category (for example the initial if you want to trade on a security listed on the American stock exchange)
Once you have selected the subcategory, its titles will be shown in the middle of the screen (see image below)
Once this point is reached, it is up to the trader to start trading the shares on the stock exchange, i.e. to decide whether to buy or sell a share on Plus500.
Buying a share on Plus500 means opening a Long position by buying a “Buy” type CFD. Plus500 is a CFD broker, so the available stocks are equity CFDs.
When you buy a Ferrari stock CFD on Plus500, you trade on the value of the Ferrari stock listed on the stock exchange. The equity trend is reproduced by the CFD, so if the trader has opened a Buy position, i.e. made a Buy at Ferrari transaction, the trader will make gains in proportion to the increases in the Ferrari share.
Selling a share on Plus500 means opening a short position by buying a “Sell” type CFD. As explained above, Plus500 is a CFD broker, so the available stocks are equity CFDs.
When you sell a Ferrari stock CFD on Plus500, therefore, you trade on the value of the Ferrari stock listed on the stock exchange. The equity trend is reproduced by the CFD, so if the trader has opened a Sell position, i.e. made a sale on Ferrari, the trader will make gains in proportion to the drop in the Ferrari share.
When the trader has reached his market choice, i.e. whether to open a position to buy or sell shares on Plus500, he can move on to the final phase. We mean, that is, the step in which they fix the details necessary to actually open the position.
Below is the window on the details of opening a position to buy shares on Plus500.
Here below we explain the various points to be taken into account in particular:
- Contracts: shows the number of CFDs Shares inserted in your trade;
- Use leverage: this is the leverage applied. CFDs are leveraged instruments, i.e. they allow you to trade on a higher number of shares than the required investment.
- Margin required: is the actual amount of investment based on the leverage applied, ie how much money the user will have to use to open their position.
- Stop Limit: by checking this box, you can set a threshold of profit reached by the user, to which the position will automatically end;
- Stop Loss: by checking this box, it is possible to set a maximum loss threshold, at which point the position will automatically end;
- Guaranteed Close: this option is not always available in every instrument, and it is used to close the position in case of considerable price variations. It requires an additional spread;
- Buy/Sell: this button will confirm the chosen settings, starting the execution of the requested order.
Concluding a trade: closing the position
We have shown you that to open the position, you must click on the button that appears in the window of the finalization of the order.
When you are no longer interested in keeping the position open, because you are satisfied with the gain or you prefer to close it (because you are losing, because the action does not convince, etc..), just click on the button “Close position”.
We underline that to close the position you simply have to “Close” it. It can rarely happen that a trader, instead of closing a position, opens an opposite position (for example, opening a position Sell with the intention of closing a position Buy). This procedure does not lead to the required result, so you should be careful.
For full training please refer to our definitive guide to CFD trading.