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Employing more than 5,500 staff (as of 31/12/2023) and with a market value of US$30.12 billion (market capitalisation), Moderna, Inc. (ticker: MRNA) is a biotechnology company that specialises in the development of messenger RNA (mRNA) medicine. It focuses on vaccines for infectious diseases, rare diseases, immune-oncology, and autoimmune diseases. Interestingly, the company’s name, ‘Moderna’, blends ‘modified’ and ‘RNA’.
Combining science, modern technology, and health, Moderna remains one of the leading companies in a competitive industry, developing medicines at unparalleled speed and efficiency. 2015 Moderna developed one of the first-in-human mRNA vaccines, followed by a multivalent vaccine in 2017. In 2020, Moderna also developed and released one of the earliest COVID-19 vaccines. Fast forward to today, the company is preparing for the upcoming COVID season and the US launch of its RSV vaccine.
Contract for Differences (CFDs) represent financial derivative contracts between two parties based on the difference in a trade's opening and closing prices. This means a buyer and seller agree to pay the difference depending on the underlying security's direction. If Trader A is long (a buy) and Trader B is short (a sell), and the price of Moderna appreciates, Trader B would pay the difference between the opening and closing prices to Trader A.
CFDs are used for speculation (and hedging) across various asset classes, including Forex, Commodities, Bonds, Stock Indices, Digital Currencies, and individual Stocks, such as Moderna. As CFDs derive their performance from the price movement of an underlying stock, investing with CFDs does not involve ownership, and all trades are settled in cash.
Leverage is a key attribute of CFD investing. Assume Moderna is trading at US$150 per share, and you were considering purchasing 100 shares; this would be an initial investment of US$15,000. However, investing in Moderna Share CFDs with FP Markets, with a margin requirement of 20%, you can trade an equivalent position size of 100 shares with an initial margin of US$3,000 (15,000 * 0.2).
1. Open an FP Markets Forex and CFD Trading Account
You can skip to the next step if you already have a live trading account with FP Markets. If not, visit the FP Markets webpage https://www.fpmarkets.com and click ‘OPEN LIVE’. This will take you to the Account Application, as shown below.
2. Download your Trading Platform
Once you have received account approval, you may log in to the FP Markets Client Portal using the login credentials sent to your registered email ID.
As exhibited below, the Portal lets clients take more control of their trading operations, from updating personal information and exploring Social Trading and Trading Tools to selecting and downloading their chosen trading platform. With FP Markets, you can also choose from world-class trading platforms, such as MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, and TradingView.
MT5 is a popular trading platform for trading Share CFDs.
3. Find the Moderna Ticker
The Moderna stock can be found in MT5’s Market Watch (Ctrl+M), which lists all active bid and ask quotes for all financial instruments with FP Markets.
Type Moderna in your Market Watch and click on the stock. This will then be added to your list and remain in place until you remove it, as demonstrated below.
To add the Moderna chart, drag and drop the stock from your Market Watch to the chart’s main interface on the right. This creates a real-time, live chart that can be altered to suit your trading preferences.
4. Place the Buy or Sell Order
If your research identifies overbought or oversold market conditions for Moderna, entering buy or sell orders is straightforward and fast with MT5.
As shown below, pressing F9 opens the order window. Ensure that the symbol selected is Moderna (this will be automatic if you pressed F9 when the Moderna chart was open); following this, input the trade parameters in the relevant fields, such as order types and stop-loss values, and press the buy or sell tab to complete the transaction.
An alternative way to enter buy or sell orders is through MT5’s One-Click Trading feature (Alt+T). Once you have inputted the trading volume, you can enter the market. The downside is the lack of options for setting stop-loss and take-profit values. This has to be done after the trade is live in your trading terminal (Ctrl+T).
Two examples of opening long and short positions on Share CFDs:
The biotech company’s second-quarter earnings report for 2024 was released on 1 August. It revealed a net loss of US$1.279 billion ($US3.33 per share), down from US$1.380 billion in Q2 23 (US$3.62 per share). Stéphane Bancel, Moderna's Chief Executive Officer, noted that the loss was less than expected mainly due to reduced costs.
Bancel also commented: ‘During the second quarter, we marked the approval of our second mRNA product and significantly lowered our operating costs. We remain focused on execution for the 2024-25 COVID season and the launch of our RSV vaccine in the U.S. With continued positive Phase 3 data across our respiratory portfolio, we are using our mRNA platform to address significant unmet medical needs and advance public health. Our platform is poised to reach millions globally this year and we are excited by its continued positive impact on patients’.
The company remains entrenched within an incredibly competitive market for both RSV and COVID vaccines. However, in light of the recent phase 3 data, some analysts believe the stock could be undervalued at current prices.
From a technical perspective, according to Moderna's weekly chart, sentiment is clearly to the downside in the long term. Following a test of support-turned-resistance at US$87.35, follow-through selling has emerged over the past few weeks. This has led price action within a stone’s throw of support consisting of US$74.46 and a trendline resistance-turned-support line, extended from the high of US$497.49. Should price dip through this area, this could lay the groundwork for a test of the October 2023 lows at US$62.55.
From the H4 timeframe, price dipped through support at US$77.41 and has retested the underside of the level heading into the close of trading last week. Assuming this base holds ground, a test of the horizontal weekly support level at US$74.46 is likely, with follow-through selling towards support on the H4 timeframe at US$71.72 also a possibility. Consequently, this could open short-term selling opportunities for traders in the short term. Further selling is possible if the unit clears bids around the weekly/H4 support combination between US$71.72 and US$74.46.
Purchasing physical shares essentially makes you part owner in Moderna as a shareholder. Moderna sells shares of their company to raise funds, allowing investors to buy and sell shares of the company during the stock exchange hours. Outperformance, or the expectation of outperformance) in the company tends to lead to a higher share price; if the value of the shares increases, so does your investment. However, if Moderna underperforms, this can lead to a lower share price and, consequently, impact your investment.
Purchasing shares in a company can also attract dividend income, grant voting rights, and, as demonstrated above, generate capital gains.
Exchange-Traded Funds, or ‘ETFs’, are funds listed and traded on formal stock exchanges, comprising a collection of assets. Shares of these ETFs are bought and sold by investors. While ETFs help diversify portfolios, it is impossible to mimic the price movement of Moderna by investing in an ETF that includes the Moderna stock.
1. Does Moderna pay a dividend?
No, Moderna does not pay dividends.
2. What are the major differences between CFDs and physical shares?
While CFDs and physical shares can attract capital gains if the stock outperforms, CFDs are a derivative product based on the underlying share price (no ownership). In contrast, physical shares represent partial ownership of the stock. Another noteworthy distinction is leverage. CFD investors have access to greater leverage than those who deal in physical shares.
3. Can I trade Moderna on MT4 or MT5?
With FP Markets, you can trade Moderna via CFD pricing on MT5 and cTrader.
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