What is Deutsche Lufthansa AG?
Deutsche Lufthansa AG is an aviation company operating in Germany and internationally. The company can trace its history back to 1926 when it was formed as the German flag carrier. Lufthansa operated as the national airline until 1945 when all services were terminated following the German defeat in the Second World War. In an effort to create a postwar national airline, a company named Luftag was founded in 1953. In August of 1954, Luftag acquired the name and logo from the previously liquidated company Lufthansa and won approval to start flight operations in 1955. The company remained a majority state-owned enterprise until 1994, although shares in the company have been traded publicly on all German exchanges since 1966.
The company has grown to offer a passenger service to more than 200 destinations in 86 countries and is the second largest airline in Europe in terms of passengers carried. In addition to its flagship airline services, Lufthansa owns subsidiary airlines such as Austrian Airlines, Swiss International Airlines, Brussels Airlines, and Eurowings. It also owns several airline-related companies, such as Lufthansa Technik and LSG Sky Chefs and is a member of the Star Alliance. The company is headquartered in Cologne and operates out of the primary hub of Frankfurt.
Past performance of LHA stock price
Lufthansa stock trading occurs on all German stock exchanges. It has more than 478 million shares outstanding and has a 100 per cent free float with a market capitalisation of €5.16bn (£4.71bn, $6.05bn). As with almost all airlines, LHA struggled in 2020 as the world shuttered in the face of the coronavirus pandemic. It has traded in the 52-week range of €7.02-€17.95 and has yet to fully recover. The share price has been slow to rebound as travel continues to be hindered; the most recent value is shown on the price chart.
The Lufthansa shares price reached its 52-week high on November 12, 2019 and its 52-week low on April 24, 2020. While the majority of industries suffered losses as the scale of the disruption the pandemic would inflict became apparent, the travel industry was one of the worst affected. Traders remain cautious to invest in Lufthansa stock as they await clear guidance from global governments on when travel will return to normal.
How to invest in Lufthansa stock?
Traditionally, those looking to invest in Lufthansa stock would purchase shares or an index which includes LHA. Traders are also able to purchase derivatives based on LHA stock such as CFDs (contracts for difference) or options.
Traders using the Currency.com tokenised trading platform can profit from upward or downward movements in the Lufthansa shares price without having to invest directly. Tokens are crypto derivatives whose value is linked to the value of a particular asset, in this case the LHA price today. 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 on exchange fees. The utilisation of this technology allows for tokenised assets 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 price will decrease you can short the stock; if you think it will increase you can take a long position. Trading in tokenised assets on Currency.com also allows traders to benefit from the leverage offered on the platform, up to 1:100.
Tokenised Lufthansa Stock Trading Guide
Trading tokenised Lufthansa shares is no more difficult than regular stock. To begin trading security tokens, you will need to follow some simple steps:
- Register for an account with Currency.com.
- Deposit funds (with crypto or fiat) in the account.
- Determine the position size desired, accounting for leverage offered by Currency.com.
- Determine your trading position (long or short) based on expected share price movement and purchase tokenised Lufthansa shares derivatives. 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.
- 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.
Why trade tokenised Lufthansa shares with Currency.com
Lufthansa stock trading at Currency.com tokenised assets exchange has many 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.
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