What is Nikola Corporation?
Nikola Corporation or Nikola Motor Company was established by Trevor Milton in 2015 with headquarters in Phoenix, Arizona. The company is named after the first name, since the last name is already taken, of the famous engineer and inventor Nikola Tesla.
The company core business is centred around the design and production of zero-emission transportation and infrastructure solutions. It manufactures zero-emission and battery-electric vehicles, hydrogen-electric vehicles, energy storage systems, hydrogen fueling station infrastructure and electric vehicle drivetrains. Some of the products of Nikola Corporation are Nikola One, Nikola Two, Nikola Tre, Nikola Refuse and Nikola Badger. It is said that while Tesla designs and innovates the electric cars segment, Nikola does the same for the track segment.
The company became a publicly-traded company through a reverse merger. Nikola corporation went public on 4 June 2020 on the NASDAQ and it is traded under the ticker NKLA. The reverse merger enabled Nikola Corp to raise hundreds of millions of dollars in funding by avoiding the hefty costs associated with the IPO process.
Past performance of Nikola stock price
Nikola Corporation is among the companies that became a publicly traded company quite recently and not much can be said about the performance of its price in the past.
At the very beginning, Nikola stock price was trading in the $30 (£23) to $34.8 (£26). It nearly tripled hitting a price of $93 a few days after becoming a publicly-traded company.
Another interesting aspect of Nikola stock price that you can see on its price chart is the common occurrence of gap ups or gap downs. The gaps between opening and closing price may be even up to $8 (£6.1) or more thanf 10 per cent, depending on the gap direction.
How to invest in Nikola stock
One way to invest in Nikola stock is to become a company shareholder through the purchase of stocks on the relevant stock exchange where this company is listed. Also, you can invest in Nikola stock using some of the innovative derivative instruments. Examples for derivative instruments are the options, futures and CFDs.
Currency.com platform offers tokenised assets that allows traders to benefit from price movements of underlying assets without direct purchase or sale. The platform uses blockchain technology which enhances the efficiency and security of transactions.
Positions with tokenised Nikola stock can be open with a leverage of 1:100 offered by the platform and with the margin of five per cent. This means that traders need to have only 5 per cent of available capital for the desired position size while the profits earned are calculated on the overall position. For instance, a trader with available capital of $1,000 (£764) may open a position worth $20,000 (£15,283) and profits are generated based on position size instead of the available capital.
Another benefit of trading tokenised Nikola shares on Currency.com platform is that it can be executed with crypto, which limits costs and fees for converting your cryptos to fiat.
Tokenised Nikola stock trading guide
Trading tokenised Nikola stock is no more difficult than regular shares. To begin trading tokenised asset, you will need to follow some simple steps:
- Step 1: Register for an account with Currency.com
- Step 2: Deposit funds (with crypto or fiat) in the account.
- Step 3: Determine the position size desired, accounting for leverage offered by Currency.com
- Step 4: Determine your trading position (long or short) based on expected share price movement and purchase tokenised NKLA shares derivatives
- Step 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.
- Step 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.
Why trade tokenised Nikola shares with Currency.com
Nikola stock trading at Currency.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 Nikola shares with Bitcoin or Ethereum. Benefit from the stock’s price movements without turning your crypto assets into fiat.
Trade tokenised NKLA stocks with a tight market spread, benefit from maker rebates and competitive taker fees.
Experienced traders can trade the world’s top markets, like Nikola, with up to 1:100 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.