What is Square?
Square is an American digital payment company founded in 2009 by Jack Dorsey and Jim McKelvey. The company was formed to provide easy-to-use, payment-processing technology that increases the accessibility of the digital economy to a wider spectrum of society.
Square offers software and hardware that enable personal handheld devices or computers to be used as a point-of-sale system.
The original product was a plug-and-play card reader used with smartphones. It incentivises sellers with low-fees, access to sales data analytics, payment dispute mediation services and chargeback protection.
The most recent offering, the cash app, is geared towards consumers, providing a convenient payment method and the ability to send and receive money transfers from anywhere in the world.
The company received significant media attention in October 2020 when it transferred the equivalent of 1% of its total market value into bitcoin. Square has continued to invest in bitcoin and held more than $500m (£353m) in the cryptocurrency as of late February 2021. For this reason, the SQ stock price can be slightly correlated to the performance of bitcoin.
Performance of Square share price
The Square share price has recovered and made significant new gains since the market crash of March 2020, when it dipped to $38.09. As of mid-2021 the stock was sitting approximately 25% below its all-time high of $276.57, which was achieved on 19 February 2021.
The Square share price chart shows the company has been gaining value steadily since the early part of 2020. The most recent financial results released by the company show gross profit of $964m for Q1 2021, a 79% year-on-year increase.
A large amount of recent growth has come from the strategy of focusing efforts on expanding international markets. Even with varying degrees of lockdown affecting sales in many jurisdictions, the company was able to grow its international business line by more than 80% from the same period in 2020.
In mid-2021 the company had traded within the 52-week range of $76.02 to $283.19, with an average of 10.7 million shares trading hands per month. Square has a market capitalisation of more than $91bn, which has been growing rapidly.
How to buy Square stock
SQ trading occurs on the New York Stock Exchange. Those looking to buy Square stock can buy it directly through the exchange, through a broker or indirectly through an index that includes SQ. Traders are also able to purchase derivatives based on the Square stock price, such as CFDs or options.
Traders looking to buy Square stock using the Currency.com tokenised platform are able to profit from upward or downward movements in the Square 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 SQ share price.
The token is registered using distributed ledger technology (DLT) the same way cryptocurrency is recorded. This technology allows trading using crypto without the need to convert back and forth with fiat currency, saving exchange fees. The use of this technology allows tokenised asset trading to be efficient, inexpensive and secure.
Trading tokenised assets based on the SQ stock price allows you to take a long or short position depending on whether you feel the price today is over or under-valued, based on the price chart. Trading in tokenised assets that follow the SQ share price on Currency.com also allows traders to benefit from the leverage offered on the platform – up to 1:20 leverage.
Why trade tokenised Square shares with Currency.com?
Trading tokenised Square shares on the 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.
Trade tokenised Square shares with bitcoin and ethereum. Benefit from the share price movements without exchanging your crypto assets into fiat.
Trade tokenised shares with a tight market spread and benefit from maker rebates and competitive taker fees.
Experienced traders can trade the world’s top stocks, like SQ, with up to 1:20 leverage.
Manage your risks and secure your profits with stop loss and take profit orders. Save your assets with negative balance protection.
Currency.com has a scalable and low latency order-management system that can execute 50 million trades a second.
Currency.com operates under new Belarusian regulation with best-in-class AML and KYC laws. Regulatory details and fees are upfront.
Tokenised share-trading guide
Trading tokenised Square shares is no more difficult than regular shares. To begin trading tokenised assets, you will 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 Square 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 be deposited back to your account after closing and you can withdraw them or take a new position.