The history of this company goes far beyond that of a simple online bookstore created in the 1990s by Jeff Bezos. Today, the official entity, registered under the name Amazon Com Inc (and listed under the title Amazon or the symbol Amazon AMZN), is a major company of the economy. Its initial public offering in New York marked the start of its stock market career.
The company's business model rests on several massive growth pillars, with revenue and net profit published each quarter.
- Online commerce and logistics: E-commerce remains the business at its core. Its global logistics connects sellers to their buyers.
- The Amazon Prime program: This subscription service retains hundreds of millions of users. Adding entertainment services such as Prime Video completes its range of services.
- The cloud pioneer (AWS): It is the true engine of the firm. The operation of the AWS (Amazon Web Services) division provides the hosting infrastructure to millions of startups and large companies.
- Technological innovation: In the field of artificial intelligence and advertising online, the Seattle firm continually creates new growth drivers. These sectors are part of the company's activities.
In the past, the group has carried out several operations of splitting (split) of its shares in the past (as past performance is no guide to the future).
The Amazon price can change according to factors linked to the company and the technology economy. CFDs make it possible to trade variations in its price.
- Volatility: The stock moves with macroeconomic announcements (such as decisions on interest rates in the United States) and at each announcement of Amazon's financial results.
- Financial publications and the growth of AWS are among the elements linked to the company's activity.
- Liquidity: The stock is traded on the markets. Positions can be opened or closed depending on market conditions.
To trade the stock or gain exposure to the technology giants, the market offers different access routes. Trading via CFDs (Contracts for Difference) makes it possible to speculate on price variations without owning the physical asset.
How do CFDs work? They allow you to speculate on the strict variation of the price, upwards as well as downwards, without ever owning the physical asset.
Trading and analysis tools
Various tools make it possible to follow the markets and analyze charts.
RaiseFX offers a centralized trading platform. Fees and costs are indicated on the platform. The spread is the gap between the buy price and the sell price.
| Trading criterion | Traditional purchase / Traditional brokers | Trading via CFDs (RaiseFX) |
|---|
| Ownership of the asset | Physical purchase, ownership of the securities | Speculation on price movements |
| Direction of the trade | You only gain if the stock rises | Buy or sell short |
| Use of capital | Requires the full amount invested | Leverage |
| Brokerage fees | Fixed fees per order and custody fees | Commissions and spreads according to the account conditions |
Diversification: Forex, Crypto and ETF
The trading account gives access to the AMZN stock as well as to Apple stocks or Alphabet stocks. You can also trade forex (currencies), crypto currency, or even gain exposure to global indices via products replicating the performance of an ETF or of the index MSCI.
Technology and information on the service
RaiseFX is regulated by the FSCA in South Africa (FSP 50506). The characteristics of our service are presented on the site.
Transactions may be affected by price slippage, notably at the opening of the markets.
Global finance uses many English-language terms. To learn effectively and read the news, here is the definition of the terms you will frequently come across.
- Market & Exchange: The term market designates the market as a whole. An exchange represents the stock exchange (the listing venue, physical or electronic).
- Investment & Financial: The investment represents the act of placing capital. The financial institutions (financial) govern this universe.
- Bank & Group Ltd: Brokers and banks (bank) adopt various legal structures, often with the abbreviations Group, Ltd (Limited) or Inc (Incorporated).
- Authority & Securitie: An authority is the supervisory body of a country (such as the FCA in the United Kingdom, ASIC in Australia or CySEC based in Cyprus, sometimes written Cypru in registration nomenclature). A securitie designates the financial instrument itself (a security).
Mastering these terms is a useful key to reading analyses in the Anglo-Saxon press.
⚠️ Legal warnings and risk management
RaiseFX is regulated by the FSCA in South Africa (FSP 50506). The general terms of use and the privacy policy are available on the site.
Understanding the dangers of leverage
Trading derivative products involves uncertainty and risks of capital loss. Losses can occur rapidly and exceed your deposit.
CFDs carry a high risk of loss. You must make sure you fully understand how margin works and the associated risks.
Before trading the stock, make sure you understand the risks. Only commit an amount you can afford to lose. Any information provided in this article or our newsletter is not personalized investment advice. The information provided is for educational purposes.
Need help? Our customer service and our center of support are at your disposal. Whether from your offices or your home, contact us for any question relating to your account.
Understanding the costs of a CFD position on Amazon
The search “Amazon Stocks Trading Platform” can refer to access to directly held shares or to a contract for difference (CFD), two distinct instruments. With a CFD, the position follows the change in the reference price without the trader holding Amazon shares. Before any transaction, it is therefore useful to understand the fees specific to the contract and the conditions of its execution.
The spread is the gap between the displayed buy price and sell price, while the margin is the sum tied up to open a position. A position kept after the daily close can also incur overnight financing, calculated according to the terms of the contract. In the event of a dividend-related event, an adjustment may be applied to the CFD account; its treatment depends on the direction of the position and on the rules of the product.
Choosing and understanding order types
A market order requests execution at the best price available at the moment it is processed. The price obtained may differ from the one displayed just before sending, particularly if the market moves in the meantime or if the available liquidity changes. This gap between the expected price and the execution price is sometimes called price slippage.
A limit order sets a maximum price for a purchase or a minimum price for a sale, but its execution is not assured if the market does not reach this limit. A stop order is triggered when the price reaches a defined threshold, then generally becomes a market order, according to the terms offered. Stop-limit orders combine a trigger threshold with an execution limit; it is important to check the exact operation of each order type in the CFD conditions.
Assessing position size and the limits of a stop
Position size corresponds to the exposure chosen on the contract, expressed in the units used by the platform. A given change in price has a different effect on the result depending on this size and the direction of the position. The margin calculator can indicate the required sum, but on its own it does not measure the potential loss or the ability to withstand an adverse movement.
A stop loss can be used to define a level at which a position must be closed, subject to the execution terms. In the presence of a price gap, a trading halt or a sharp movement, the closing may occur at a price different from the indicated threshold. Leverage, when used, amplifies gains as well as losses; position size and protective orders therefore do not remove the risk of loss.
Identifying the important dates in the Amazon calendar
The calendar of a listed company is not limited to market sessions. Earnings releases, shareholder meetings and company announcements may be accompanied by documents detailing its activity and its stated outlook. These events are dated, but their content and the market's reaction cannot be known in advance.
To follow the Amazon stock, it is possible to consult the company's official communications and the calendar of public holidays of the market concerned. A shortened session or a closure can change the periods during which orders are executed and the availability of prices. It is also necessary to distinguish the local time of the market from the time displayed on an account, which may depend on the time zone selected.
Common mistakes when trading an Amazon CFD
Confusing a CFD with holding shares is a significant misunderstanding: the contract does not confer the same rights as a share registered in the name of its holder. Another possible confusion is to regard the displayed price as a certain execution price, whereas quotes move and the terms of the order matter. Reading the characteristics of the product helps clarify these differences.
Neglecting financing costs can also distort the assessment of the cost of a position held for several days. Some users focus only on the price movement and overlook adjustments, closing conditions or the possibility of slippage. Finally, multiplying transactions without taking account of the cumulative exposure can increase the overall risk, even when each position taken in isolation appears limited.
Keeping a journal of your transactions
A trading journal can record the date, the order type, the direction of the position, its size and the associated costs. It can also note the context observed at the time of the transaction, without turning a past observation into an indication of future results. These elements provide a factual record of decisions and execution conditions.
After the close, the statement can specify the opening and closing price, any adjustments and the difference between the result before fees and the result after fees. A regular review helps to spot input errors, forgotten fees or gaps between the recorded plan and the transaction carried out. Such monitoring is an information tool and guarantees neither an improvement in results nor the absence of losses.