What is Costco Wholesale Corporation?
Costco Wholesale Corporation is a US-based global retailer that operates a chain of discount stores. The company sells merchandise with a large discount to its club members who pay an annual membership fee.
The company opened its first store warehouse in 1983 in Seattle. In 1993 it merged with Price Club when it was named PriceCostco until it returned to its initial name in 1997. The company was founded by James Sinegal and Jeffery Brotman. It is headquartered in Issaquah, Washington.
The company manages over 700 membership warehouses stores, placing the company among the biggest wholesale club operators in the US. Costco Wholesale operations are considered to be even larger than Walmart's Sam's Club. The company sells a variety of products falling in categories such as groceries, candy, appliances, jewellery, cameras, sporting goods, furniture, office supplies and a variety of other products.
Costco became a publicly-traded company in the last quarter of 1985 at a price of $10 (£7.44) per share, which is the price before the stock splits took place. Costco Wholesale Corporation is a component of different indices such as NASDAQ-100 Index, S&P 100 index and S&P 500 index.
Performance of Costco share price
Costco stock price has displayed a continuous increase since it was first offered to the public a few decades ago. However, the Costco stock price experiences certain pullbacks away from the trending direction, followed by bounce backs towards original trend movement. Even though Costco share price moves in an overall upward trend, looking closer at the price chart, it can be seen that it went through a sideways movement from 2000 until the end of 2002. Costco share price reached its peak during the last quarter of 2020 when it hit a record high level of around $390 (£290).
As a result of the specificity of the Costco industry, its price may go through significant fluctuations through the session or during a trading week. For instance, Costco share price may fluctuate more than 5 per cent during the day based on relevant events and economic activities. Costco stock price shows smaller gaps between the closing and the opening price on the daily chart, while price gaps may appear regularly on lower time frames such as the hourly charts. Costco share price may experience a movement of more than 10 per cent throughout the week.
How to invest in Costco stock with tokenised assets
Digital representation of real-life assets through the creation of tokenised assets is enabled with the development of blockchain technology. The tokenisation of assets offers innovative ways in which traders can leverage the value of assets. The features of blockchain technology that enable the creation of tokens also simplifies the process of trading – transactions on a distributed ledger may eliminate the need for intermediaries which traditionally increased the fees. The application of blockchain reduces the time needed to execute a transaction, making the trading process more efficient in terms of financial costs and execution time.
Tokenised assets expand the trading opportunities because they give traders the chance to trade tokens that are directly associated with an underlying asset. The value of these tokens mimics the price movements in the reference assets making the changes in token value verifiable. The process of buying and selling tokenised assets, such as tokenised Costco shares, or other tokenised securities available on the Currency.com platform, is similar to the process of buying and selling real shares. Traders speculating a price increase will purchase the tokenised assets. A short sale of a tokenised asset may be undertaken on speculation about a potential price decrease.
The Currency.com tokenised assets platform offers traders the possibility to trade tokenised assets directly with crypto. The possibility to trade with cryptocurrencies such as Bitcoin or Ether eliminates the fees and risks associated with the process of converting cryptocurrencies into fiat money. Currency.com clients can trade tokenised assets with a generous trading margin, which means that they can open larger positions with the same level of investment capital.
You can invest in Costco stocks with a margin of 5 per cent, which is only a fraction of the position's value that may be opened. When traders invest in Costco stocks using the margin given by the tokenised assets platform, they may enlarge the size of the potential profits. For instance, a trader with available trading capital of $700 (£529) can only purchase a couple of Costco shares considering the price today and even a 10 per cent increase in price may potentially bring a profit of only $70 (£52.9) not considering the fees. Trading tokenised Costco shares with the same amount of capital but with the 5 per cent margin offered by the platform means that the trader will open a position of $14,000 (£10,576). A 10 per cent movement in Costco stock price can potentially bring $1,400 (£1,057.6) in profits.
Tokenised Costco stock trading guide
The blockchain technology used in the creation of tokenised assets simplifies the Costco stock trading process when tokenised shares are traded on the Currency.com platform. The steps involved in the process of trading tokenised assets are:
- 1. Open an account with the Currency.com platform. You can do this using your email address and you need to create a password.
- 2. Accounts can be funded with fiat money as well as with cryptocurrencies like Bitcoin or Ether. It is up to the trader to decide the form of capital that will be deposited.
- 3. Planning for a specific position, the margin offered by Currency.com should be included in the calculations and estimations because of its effect on the potential profits or the level of capital.
- 4. Opening and closing positions with tokenised Costco shares is identical to the process of buying or selling the real-life assets. Traders may decide to go long or take a short position based on their analysis. Long and short positions opened by traders on the Currency.com platform will be matched while free positions are hedged through Capital.com or LMAX Digital or exchanges like Binance, Bitstamp, Kraken, NASDAQ, NYSE and Gain Capital.
- 5. Traders can decide to close their positions in accordance with their strategy either by directly closing the position or by setting take-profit orders. Besides, Currency.com also offers the option for setting stop-loss orders. Because traders can trade tokenised assets with crypto, they can also withdraw their capital in the underlying cryptocurrency.
Why trade tokenised Costco shares with Currency.com
Tokenised stock trading at Currency.com tokenised assets exchange has a number of advantages. Tokenised assets are underpinned by robust and immutable blockchain technology. Opening trade will give you a token that tracks and moves according to the underlying instrument's price.
- One-stop crypto trading platform
Trade tokenised Costco shares with Bitcoin or Ethereum. Benefit from the stock's price movements without turning your crypto assets into fiat.
Trade tokenised Costco stocks with a tight market spread, benefit from maker rebates and competitive taker fees.
Experienced traders can trade the world's top markets, like Costco, 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.
We have a scalable and low latency order management system, which can execute 50 million trades per second.
Currency.com operates under new Belarusian regulation with best-in-class AML and KYC laws. Regulatory details and fees are upfront.