The history of Amazon
- Amazon was founded in 1994 by Jeff Bezos in Seattle, Washington, originally as an online bookstore
- The company quickly expanded into other product categories, becoming a global e-commerce leader
- In 2005, Amazon introduced Amazon Prime, a membership program offering faster shipping, which has since grown to include video streaming and other benefits
- Amazon Web Services (AWS), launched in 2006, transformed the company into a leader in cloud computing, contributing significantly to its revenue
- Today, Amazon is a dominant force in multiple industries including e-commerce, cloud computing, entertainment, and artificial intelligence, making it one of the largest companies in the world
Background to Amazon’s share price
- Amazon (AMZN) shares are listed on the NASDAQ stock exchange
- The company went public in 1997, with its initial public offering (IPO) priced at $18 per share
- Amazon’s stock price has experienced tremendous growth, particularly after its expansion into cloud services and global e-commerce dominance
- In 2020, Amazon achieved a market capitalisation exceeding $1 trillion, positioning it among the world’s most valuable companies
- AMZN shares are often volatile around earnings reports, Prime Day sales, and announcements related to Amazon Web Services (AWS) and new innovations
What are the advantages of trading Amazon CFDs over Amazon shares?
- No ownership required: When trading Amazon CFDs, you are speculating on the share price without having to own the underlying shares. This avoids the complexities of stock ownership
- Leverage opportunities: Amazon CFDs (Contracts for Difference) offer traders the chance to use leverage, which allows them to control larger positions with less initial capital
- Long and short trading: Using share CFDs, traders can take both long and short positions in both rising and falling markets, offering greater flexibility in various market conditions
What are the benefits of trading Amazon CFDs?
- Global leader in multiple sectors: Amazon is not only a leader in e-commerce but also in cloud computing through AWS, offering traders exposure to a highly diversified business
- High volatility: Amazon’s rapid growth and continuous innovation create significant price fluctuations, presenting multiple trading opportunities
- Strong financial performance: Amazon regularly posts solid earnings and revenue growth, making it an attractive CFD to trade around quarterly financial reports
- Market resilience: Amazon’s dominant market position provides a degree of stability, making it a safer choice compared to smaller companies
- Innovation-driven growth: As Amazon continues to expand into new areas like AI, groceries, and streaming, traders can benefit from long-term growth and short-term volatility
24-hour market
Unlike other financial markets, the forex market operates 24-hours a day, five days a week, allowing you to trade at any time that suits you, regardless of your location
Trade long or short
With forex trading,you have the flexibility to profit in both rising (long) and falling (short) markets, giving you more opportunities to make profitable trades
Diverse trading opportunities
With a wide range of currency pairs to choose from, you’ll be able to find trading opportunities in most economic conditions and market types
Access to leverage
Let your trading benefit from high leverage opportunities, allowing you to control a larger position with a smaller capital investment, potentially increasing your profits
Long and short-selling opportunities
Trading CFDs enable traders to take both long and short trading positions. This flexibility permits trading in both rising and falling markets
Market capitalisation
Amazon is considered a relatively stable share CFD to trade, compared to other smaller tech companies which may have less liquidity
Hedging opportunities
Amazon CFDs can be used to hedge existing positions in other related assets to offset potential losses
Frequently asked questions
What are the trading hours for Amazon CFDs?
- Amazon CFDs are traded during the hours when the NASDAQ is open, which is between 9.30am and 4.00pm (Eastern Time) or 2.30pm to 9.00pm Greenwich Mean Time (GMT)
- Some brokers such as MarketMates offer extended trading hours to accommodate pre-market and after-hours trading, which can allow traders to react to news and earnings reports outside of regular trading hours
What factors influence the price of Amazon share CFDs?
- Earnings reports: Amazon’s quarterly earnings are a key driver of its share price, particularly revenue from AWS and retail segments
- New product and service launches: Announcements about new innovations, acquisitions, or Prime Day results can significantly impact investor sentiment
- Global economic conditions: As a global company, Amazon’s share price is sensitive to economic shifts, consumer spending trends, and supply chain disruptions
- Technological advancements: Ongoing developments in cloud computing, AI, and logistics can enhance Amazon’s business prospects and influence its stock price
- Regulatory scrutiny: Being a large global company, Amazon is subject to scrutiny from regulators in different countries, which can influence its stock price
What are the risks of trading Amazon share CFDs?
- Leverage risk: CFD trading involves leverage, which can amplify both gains and losses, especially in a highly volatile stock like Amazon
- Market volatility: Amazon shares can experience sharp movements due to economic news, earnings surprises, or regulatory actions, increasing the risks for traders
- Competition: Amazon faces increasing competition in cloud computing, retail, and media services, which could negatively impact its share price over time
- Costs and fees: Holding Amazon CFDs overnight or during periods of inactivity may incur additional fees, reducing profitability over time
- Regulatory challenges: Being a global giant, Amazon faces ongoing antitrust investigations and regulatory hurdles, which could affect its stock price and increase trading risks
What are the most popular Amazon share CFD trading strategies?
- Scalping: Scalping involves making quick trades to profit from small price changes throughout the day. This strategy requires a good understanding of market trends and fast decision-making
- Day trading: Day traders look to profit from short-term price fluctuations by opening and closing positions on the same trading day, with trades based on technical analysis and market sentiment
- Swing trading: Swing traders aim to capture medium-term trends by holding positions open for several days or weeks, often relying on news events, earnings releases, and chart patterns to predict price movements
- Hedging: Traders may use Amazon CFDs to hedge against positions in other tech stocks or indices, protecting their portfolios from sector-wide fluctuations
- Earnings trading: Trading Amazon CFDs around its quarterly earnings reports is a popular strategy, as the company’s financial results often lead to significant price swings
Why MarketMates?
Marketmates is a fairer, more transparent way to trade from a broker who is on YOUR side
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Amazon Stock Chart
A powerful chart for you to use with all the customisable options you’d expect from TradingView.
Change the ticker, the time view, the type of chart you wish to view, and then add your favourite indicators.
Stock Market Active Movers
This stock market list shows the top five gainers and losers on the NASDAQ, and the most active stocks for the day. View the results by most active stocks, gainers and losers, and change the time period according to your trading style.
Stock Market News
Keep track of what’s happening in the financial markets with this daily news summary, filtered to bring you the most important news as it happens.
Use the slider on the right-hand side to reveal more news items.
NASDAQ Economic Calendar
Never miss vital upcoming economic events with this customisable economic events calendar, set to show calendar events from the USA.
See all the events and announcements you need to know, with the ability to set up filters for:
- Event importance (all, or key events only)
- Different countries or regions
