Trade American Airlines Group Inc. - AAL stock price

What is American Airlines Group Inc?

American Airlines Group Inc. is a holding company established in 2013 after the merger of AMR Corporation (American Airlines, which declared bankruptcy in 2011) and US Airways Group Inc. or US Airways. The new company has its main offices in Fort Worth, Texas. AMR became the owner of the majority – or 72 per cent – of the parent company while US Airways Group shareholders owned the remaining 28 per cent of the new company. The company, with its subsidiaries, manages scheduled air transportation services for passengers and cargo offering freight and mailing services.

The size of AAL operations as a network air carrier positions the company as the largest airline in the USA and one of the biggest airlines worldwide. Business activities are managed through geographical segments such as Department of Transportation Domestic; Department of Transportation Latin America; Department of Transportation Atlantic; and Department of Transportation Pacific.

American Airlines Group Inc. is also a parent company of multiple wholly-owned subsidiaries such as American Airlines, Envoy Air Inc, Piedmont Airlines Inc and PSA Airlines Inc.

American Airlines Group Inc. is a publicly traded company listed on the NASDAQ Global Select Market under the symbol “AAL”. American Airlines had an IPO in 2013 (following the merger) when the new stock was sold at $25 (£19).

Past performance of American Airlines stock price

The American Airlines share price reached two major peaks since the merger took place when it had a price of $55 (£41.63) in March 2015 and hit a record high price of $59 (£44.65) in January 2018. The shares had a record low level of $8.65 (£6.55) on May 14, 2020. The drastic decrease in price in 2020 may have been caused by almost diminished demand for American Airlines services during the pandemic outbreak.

The movement of the American Airlines share price shows a tendency to form a trend in either direction. Up to the point when it reached a peak in 2018, the price was moving in a multi-year upward trend, after which it started a downward sloping trend and hit the bottom price. It positions itself as an adequate asset for trend trading strategies.

Although there is a clearly defined trend, American Airlines share price goes through significant price retracements and bounces back toward the trend direction. The daily price chart shows that these price swings may even be larger than 20 per cent, especially during unfavourable economic events such as the one triggered by Covid-19. Also, gaps up and gaps down are a common occurrence in the value movements and they might go as high as 5 per cent.

How to invest in American Airlines stock

The development and growth of the financial markets have created a variety of instruments which enable traders to invest in American Airlines stock.

The traditional way to invest in American Airlines stock is through the purchase of shares, through which you technically become an owner of the company (up to the portion of the shares you have bought). When traders invest in American Airlines stock the drawback is that their profit is limited by the capital they can afford to invest. For instance, if you invest $1,000 (£752) in American Airlines and the price increases by 4 per cent then your potential profit is $40 (£30), but keep in mind that you are liable for brokers' fees when you open and close your position. So, the ending profit will be less than $40.

Derivative instruments may be complex, especially for inexperienced traders. It should be noted that while some derivative instruments entail the obligation for a purchase and sale transaction of the reference assets to take place, others will give only the right and not the obligation. Due to characteristics of instruments such as futures and options, the cost of trading some underlying assets may be higher.

The problems with the widely used trading instruments in the past are overcome with the development and widespread use of blockchain technology. Based on this technology Dzengi.com tokenised real-life assets and developed new trading instruments that offer faster transaction execution at lower costs, higher safety and lower complexity. Tokenised American Airlines shares mimic the price fluctuations in company stocks, enabling traders to earn without the need to buy or sell stocks.

Dzengi.com eliminates the need for traders to convert their Bitcoin or Ethereum to trade American Airlines stock; traders can open positions with tokenised American Airlines shares directly with crypto, which simplifies the trading experience.

The Dzengi.com trading platform overcomes the profitability limitations evident with a direct stock purchase by offering leverage of 1:500 for tokenised assets. Tokenised American Airlines shares can be traded with a margin of only 5 per cent, which is the portion of the overall position value that will be covered by the trader's own capital. For example, imagine that $1,000 (£752) is the available capital, which will be used to open a long position with tokenised American airlines shares. Hence, the 5 per cent margin means that the trader can open a position of $20,000 (£15,040). The positive aspect is that this margin also increases the profit level, so if we consider the 4 per cent increase from the above example it can be seen that the potential profit for a long position would be $800 (£602), which is much more than $40.

Tokenised American Airlines stock trading guide

Trading tokenised American Airlines stock is no more difficult than regular shares. To begin trading tokenised assets, you will need to follow some simple steps:

• Step 1: Register for an account with Dzengi.com.
• Step 2: Deposit funds (with crypto or fiat) in the account.
• Step 3: Determine the position size desired, accounting for leverage offered by Dzengi.com.
• Step 4: Determine your trading position (long or short) based on expected share price movement and purchase tokenised AAL shares derivatives.
• Step 5: Dzengi.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.
• Step 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 deposit back to your account after closing and you can withdraw or take a new position.

Why trade tokenised American Airlines shares with Dzengi.com

American Airlines stock trading at Dzengi.com tokenised assets exchange has a number of advantages. Tokenised assets 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.

• One-stop crypto trading platform

Trade tokenised American Airlines shares with Bitcoin or Ethereum. Benefit from the stock’s price movements without turning your crypto assets into fiat.

• Tight spreads

Trade tokenised American Airlines stocks with a tight market spread, benefit from maker rebates and competitive taker fees.

• Leverage

Experienced traders can trade the world’s top markets, like American Airlines Group Inc., with up to 1:500 leverage.

• Effective risk management

Manage your risks and secure your profits with stop loss and take profit orders. Save your assets with negative balance protection.

• Instant order execution

We have a scalable and low latency order management system, which can execute 50 million trades per second. 

• Safe regulation

Dzengi.com operates under new Belarusian regulation with best-in-class AML and KYC laws. Regulatory details and fees are upfront.