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JP Morgan Chase & Co. (NYSE; ticker: JPM) is a prominent multinational financial services firm and a leader in investment banking. Headquartered in New York City, it is also the largest bank in the world by market capitalisation (US$690.63 billion).
The bank’s roots date back to 1799 when The Manhattan Company was founded – its earliest predecessor institution. Fast forward 200 years, JP Morgan Chase & Co. was established in 2000 after merging with The Chase Manhattan Corporation.
Serving both businesses and individuals, the bank operates in more than 100 countries and has over 300,000 employees worldwide. The company’s core business segments include ‘Asset and Wealth Management’ (offering services like mergers and acquisitions, equity and debt underwriting, and trading), ‘Commercial Banking’ (services to corporations, including lending, treasury services, and trade finance), ‘Consumer and Community Banking’ (operates retail and commercial banking services, offering checking and savings accounts, credit cards, mortgages, and auto loans), ‘Corporate and Investment Banking’ (the bank works with some of the world’s most important corporations, governments and institutions).
Contracts for Differences (CFDs) are unique leveraged financial instruments that facilitate both speculation and hedging across global markets, including major asset classes, such as Currencies (Forex), global Stock Indexes, Bonds, Commodities, Exchange-Traded Funds (ETFs), and individual Shares, like JPMorgan Chase & Co.
At their core, CFDs are derivatives, meaning they ‘derive’ their value from the underlying asset’s performance. This also means that unlike investing in the company's physical shares, CFDs do not facilitate ownership; CFD trading only permits investors to trade based on the price movement, and all trades are executed on a cash-settled basis.
The ability to trade the financial markets using leverage is another key attribute of the CFD market. To help explain how leverage works, let’s imagine an investor wants to buy 500 shares of JPM, and the (fictional) share price is US$20. To buy 500 shares without using leverage would cost the investor US$10,000. However, with FP Markets, you can trade an equivalent position size but only ‘put up’ 20% of the initial investment value (referred to as your initial margin), so US$2,000. By trading on margin, the investor effectively leverages their account equity by 5:1.
1. Open an FP Markets Forex and CFD Trading Account
The first step to investing in the Forex and CFD markets involves registering and opening a trading account with FP Markets. This can be done in a few simple steps.
Navigate to the FP Markets main webpage and click the OPEN LIVE button at the upper right corner; this will open the Account Application page, consisting of five steps.
2. Download your Trading Platform
Investing success depends on several factors, one of which involves choosing the right trading platform. You can access several superior trading platforms with FP Markets, though most Share CFD investors choose MetaTrader 5 (MT5) and cTrader.
To download your preferred trading platform, visit the FP Markets Client Portal. You can access it using the login details sent to your registered email address during your registration in Step 1.
3. Find the JPM Ticker
To find the JPM stock ticker on MT5, you must ensure the platform is open and connected to the correct server. Following this, navigate to the platform’s Market Watch tab (Ctrl+M – see the first image below); this lists the active and available bids and asks quotes for all of the tradeable instruments at FP Markets. You could type ‘JPM’ at the bottom of the Market Watch and then select the stock to create a new row, or if you prefer to view all available instruments, right-click anywhere in the Market Watch and select ‘Show All’.
From the Market Watch, you can then drag/drop the stock to the chart’s main interface and alter its properties to suit your trading approach (see the second image below).
4. Place the Buy or Sell Order
While some market participants prefer to use MT5’s one-click trading feature (Alt-T – see image on the right below), most traders and investors tend to choose the order window for placing buy and sell orders (F9 – see image on the left below).
As you can see, within the order window, you can set your order type, trading volume, and stop-loss and take-profit orders. For newer Share CFD investors, it is important to note that 1 CFD contract equates to 1 company share.
Share CFDs:
JP Morgan Chase & Co. has a meaningful global presence and operates a globally diversified revenue stream. The bank’s far-reaching network permits the company to serve a broad and diverse range of clientele, from individuals to major corporations and governments. The bank’s size, scale, and long-standing reputation are advantages for many investors. Another important point is the company’s strong risk management practices designed to protect client interests and safeguard its operations.
According to the company’s Q3 24 earnings, released on 12 October, JP Morgan Chase & Co. results were impressive, printing a beat on earnings, the revenue side of things, and they reported a gain of 3% on net interest income – which was better than the company expected in their guidance – as well as solid income. This, coupled with Chairman and CEO Jamie Dimon coming across as optimistic and confident, places the stock in a good position.
Dimon commented: ‘The Firm reported strong underlying business and financial results in the third quarter, generating net income of $12.9 billion and an ROTCE of 19%. In the CIB, investment banking fees grew 31%, while Markets revenue was resilient, rising 8%. Payments fees grew by double-digits as investments are fueling organic growth. In CCB, we ranked #1 in U.S. retail deposits for the fourth consecutive year. Card loans increased 11%, and we saw robust acquisition of 2.5 million accounts. Finally, in AWM, asset management fees rose 15%, and long-term net inflows were a record $72 billion’.
Dimon added: ‘We have been closely monitoring the geopolitical situation for some time, and recent events show that conditions are treacherous and getting worse. There is significant human suffering, and the outcome of these situations could have far-reaching effects on both short-term economic outcomes and more importantly on the course of history. Additionally, while inflation is slowing and the U.S. economy remains resilient, several critical issues remain, including large fiscal deficits, infrastructure needs, restructuring of trade and remilitarization of the world. While we hope for the best, these events and the prevailing uncertainty demonstrate why we must be prepared for any environment’.
According to Refinitiv data, projections show that 63% of analysts are bullish about the JPM stock, while 33% rate the stock a ‘hold’, and 4% suggest selling.
Source: LSEG
Technically, from the monthly chart of JPM, the stock is poised to end strongly in November, currently up nearly 8% after testing record highs of US$248.00. This follows the breakout above a large channel resistance (from the high of US$172.96) earlier this year and a subsequent retest as support in August. Regarding resistance on the monthly chart, the next port of call can be seen around a 1.618% Fibonacci projection ratio at US$257.46.
Meanwhile, on the daily chart, you will see that price action ended the recent session testing the lower boundary of an ascending triangle pattern (constructed from the all-time high and a low of US$234.77). With room to continue pushing higher on the monthly chart and the ascending triangle, often referred to as a bullish continuation pattern, a breakout above the pattern's structure could lead to follow-through buying in this market. At the same time, a breakout lower could indicate sellers are looking to target daily support from US$225.52.
Companies like JP Morgan Chase & Co. sell shares to raise money to fund their operations, from expanding business, research and development, and fulfilling debt obligations. Investors buy these shares – usually through an investment broker on a stock exchange – with the expectation that the share price will rise over time (capital gains). By investing in physical shares, not only is there potential for upside appreciation, you will become a partial owner of the company, receive regular dividend payments if the company offers them, and be entitled to vote at the company’s annual meeting.
The futures and options market provides an alternative investment option to invest in stocks. While futures and options contracts are leveraged derivative instruments (that derive their value from the underlying share price) traded on exchanges, unlike CFDs, they can be physically settled – albeit seldom done as most investors settle in cash.
A futures contract is a legally binding agreement that commits both parties to buy and sell at a specified price on a future date. An options contract, on the other hand, provides the buyer with the right but not the obligation to buy or sell at a specified price on a future date; the obligation falls on the seller of the option in return for a premium paid by the option buyer. Irrespective of whether the buyer exercises the option or not, the option seller keeps the premium paid. This is their return for accepting the risk/obligation.
An ETF tracks a specific market index or a basket of pre-selected stocks, which are designed to mimic the performance of a particular market segment. These can include major US equity indexes, such as the S&P 500 and the Nasdaq, or an index that tracks a specific sector like technology or energy.
An ETF comprises shares that can be bought and sold on a stock exchange, just like common stocks. Each ETF has a unique ticker symbol, and investors can access intraday price data during stock exchange hours. Investors often prefer ETFs for several reasons, including their diversification benefits (as they can hold a wide variety of assets), low costs, and, for many, tax efficiency.
1. Does JPM pay a dividend?
JP Morgan Chase & Co. does pay a dividend. As of writing, the company’s annual dividend yield is 2.06%.
2. What are the major differences between CFDs and physical shares?
Key differences between CFDs and physical shares are the ownership rights (CFDs are cash-settled derivatives, and physical shares bestow partial ownership) and the leverage offered (CFDs offer far greater leverage options than physical shares). Finally, CFDs are traded over the counter (OTC) – between a CFD provider and the investor – while physical shares are generally traded on a formal stock exchange.
3. Can I trade JPM on MT5?
With FP Markets, JPM can be traded on both MT5 and cTrader.
4. What are the trading hours for JPM?
The trading hours for JPM are between 16:30 and 23:00 GMT+2 (Monday-Friday).
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