What is GameStop Corporation?
GameStop Corp is a USA-based video game, consumer electronics and gaming merchandise retailer headquartered in Grapevine, Texas. GameStop operates over 5,700 retail stores in 14 countries as well as an online sales network.
The company was founded in 1984 by three Harvard business school graduates in Texas under the original name Babbage’s. The original focus of the company was the retail market for educational software. The company benefited from an early investment by billionaire Ross Perot. Babbage’s was sold to Barnes & Noble in 1999 for $215m and was briefly called FunCo Inc before finally changing its name to GameStop in 2000. GameStop was spun off from Barnes & Noble in 2002 and listed on the New York Stock Exchange (NYSE) following an IPO in the same year. The company grew through a series of acquisitions, most notably acquiring Electronics Boutique (EB) Games in 2005 to become the world’s largest video game retailer.
While operating losses have been increasing in recent years due to the ease of purchasing video games online the company made global headlines in early 2021 as retail investors pushed back at Wall Street hedge funds who had made GME the most shorted stock on the NYSE. The band of retail investors pushed the GME stock price up, forcing the hedge funds to abandon their positions and thus push the price even higher.
Performance of GameStop share price
The GameStop stock price rose considerably in the early stages of 2021 as retailer investors increased buying after the stock was identified as the most shorted stock on the NYSE. The GameStop stock price took off in late January and forced multiple large hedge funds to abandon their short positions in the face of mounting losses. The GME stock price became increasingly volatile in the latter part of January but has remained at a much higher level than the start of 2021.
As of early 2021, the GameStop share price has traded within the 52-week range of $2.57 to $483 with a market cap of over $22.6bn. GameStop trading has an average volume of over 26 million shares per day.
How to invest in GameStop stock?
The GME share price is listed on the NYSE. Those looking to invest in GameStop stock can purchase shares directly through the exchange, through a broker or indirectly through an index which includes GME. Traders are also able to purchase derivatives based on the GME share price such as CFDs or options.
Traders looking to invest in GameStop stock by using the Currency.com tokenised platform are able to profit from upward or downward movements in the GME stock 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 GameStop 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 use of this technology allows for tokenised asset trading to be efficient, inexpensive, and secure.
When trading tokenised assets based on the GameStop share 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 GameStop share price will decrease you can take a short position and if you think it will increase you can take a long position. Trading in tokenised assets on Currency.com also allows for traders to benefit from the leverage offered on the platform, up to 1:500 leverage.
Why trade tokenised GameStop shares with currency.com
Trading tokenised GameStop shares at Currency.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 GameStop shares with Bitcoin or Ethereum. Benefit from the shares price movements without exchanging your crypto assets into fiat.
Trade tokenised shares with a tight market spread, benefit from maker rebates and competitive taker fees.
Experienced traders can trade the world's top stocks, such as GME, 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.
Tokenised shares trading guide
Trading tokenised GameStop shares is no more difficult than regular shares. To begin trading tokenised assets, you will follow need to follow some simple steps:
- 1. Register for an account with Currency.com.
- 2. Deposit funds (with crypto or fiat) in the account.
- 3. Determine the position size desired, accounting for leverage offered by Currency.com.
- 4. Determine your trading position (long or short) based on expected price movement and purchase tokenised GameStop shares.
- 5. Currency.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.