UBS Stock Price Guide: How to Trade UBS Shares CFDs

UBS Group (UBSG) is a global Swiss investment bank that some traders might consider as a new addition to their strategy. This guide explores the current UBSG stock price, delves into Contracts for Difference (CFDs) as a potential trading strategy, and analyses key factors that influence the stock price. By the end, it might be easier for you to decide if trading UBS Group shares with CFDs aligns with your trading goals.

TL;DR

• UBS Group is a company belonging to the banking sector headquartered in Switzerland and the United States.
• While the big bank was formed in 1998 through the merger of Union Bank of Switzerland and Swiss Bank Corporation, UBS Group boasts a rich history dating back to the second half of the 19th century.
• Shares of UBS Group (UBSG) can be influenced by a wide range of factors such as its financial results, market environment, regulation, political events, geopolitical factors, and unexpected events, among others.
• One way to trade UBS Group stock over the short-term is to use Contracts for Difference (CFDs) through various popular trading strategies, such as day trading, swing trading, and position trading.

What Is UBS Group?

UBS is a prominent player in the financial services industry, providing a wide range of solutions in retail and commercial banking, investment banking, wealth management, and asset management.

The financial institution has its headquarters in Zurich and Basel, Switzerland, and has a strong presence in more than 50 countries globally. UBS Group also has a prominent role in the United States, with its American headquarters located in New York City under the name of UBS Bank USA.

UBS Group Brief History

• 1998: Creation of UBS AG from the merger of Swiss Bank Corporation and Union Bank of Switzerland.
• 1999: UBS showcases its dedication to sustainability through the implementation of a top-tier environmental management system. Significantly, they were the very first financial institution that got ISO 14001 accreditation for their banking activities.
• 2000: Swiss bank UBS expands its US presence by acquiring brokerage firm PaineWebber and becomes the first non-US bank to be listed on Wall Street.
• 2003: UBS gains access to China's securities market with QFII certification.
• 2009: After weathering the 2007 financial crisis and subsequent market crash, UBS rebounds to profitability in Q4.
• 2020: The COVID-19 pandemic acts as a catalyst, rapidly accelerating the digital transformation of businesses and fundamentally changing how they interact with clients in the digital space.
• 2023: In a move to consolidate the Swiss banking industry, UBS Group acquires Credit Suisse Group, the country's second-largest universal bank.

UBS Group’s Share Price Milestones

• 1995-2006: A period of growth for the Swiss bank that accelerated its demographic and cultural influence in the United States with the acquisition of the US investment bank and stock brokerage PaineWebber. UBS Group stock price increased by 268% over the period, going from 20.12 CHF per share to 74.06 per share.
• 2007-2011: The global financial crisis that erupted in 2007, followed by the European debt crisis starting in 2011, deals a heavy blow to UBS Group's stock price. This turbulent period witnesses a 85% decline, with the price going from 75.10 CHF to 11.18 CHF.
• 2011-2015: UBS Group stock price increases by 75.60%, from 11.18 CHF to 19.52 CHF, probably due to the improved financial and economic environment in Europe.
• 2016-2020: The price of UBS shares weakens by 36.12% from 19.20 CHF to 12.65 CHF with very volatile years in 2020 due to the outbreak of COVID-19.
• 2020-June 2024: UBS Group stages a turnaround, boasting several years of rising consecutive growth. Its stock price surges by 119.82%, climbing from 12.26 CHF to 26.96 CHF. This upswing is likely fueled by factors like rising interest rates and the strategic acquisition of Credit Suisse.

What Are the Potential Drivers of UBS Group’s Share Price?

There are many factors that can determine the price of shares. Here are some of the most important drivers for UBS Group stock price:

• Earnings Announcements: Strong earnings reports that surpass analyst estimates throughout the earning season have the potential to enhance investor confidence, which in turn may result in an increase in the stock price of UBS Group. On the other hand, when results are disappointing, it might lead to sell-offs, causing the price to decrease.
• Financial Regulations: Regulatory changes in the banking sector, specifically those related to capital requirements and investment banking and trading operations, have the potential to raise UBS Group's operational expenses and income, which may in turn influence its profitability and stock value.
• Monetary Policy: When central banks alter their monetary policy path, particularly with regards to interest rates, it can have an impact on investor behaviour and the general market environment, depending on how hawkish or dovish their stance is. Typically, UBS Group's profitability is enhanced by increasing interest rates, which may result in a rise in its stock price (or vice versa).
• Geopolitical and Political Factors: Events such as political instability, trade conflicts or economic sanctions can generate unpredictability and a tendency to avoid risk in the market, which might result in a decrease in the stock price of UBS Group.
• Market Sentiment: The market's general attitude, which is impacted by a range of news and events, can affect how investors feel about UBS Group. Positive sentiment might result in heightened purchasing demand and an upward movement in the stock price, while a negative mood might result in the opposite outcome.
• Competition and Acquisitions: Heightened competition in the financial services industry might exert strain on UBS Group's profitability. In some cases, it may support innovation, attracting more clients and increasing revenue. On the other hand, acquisitions that are effective in increasing the company's market reach or product offerings might have a favourable effect on the stock price.
• Professional Analyst Coverage: Research reports and recommendations from analysts have the potential to impact investor sentiment. Positive analyst ratings have the ability to attract a larger number of buyers and potentially increase the stock price. Conversely, negative ratings or outlooks might have the opposite effect.

Trading UBS Group’s Shares With CFDs: Risks and Advantages

Trading stocks with Contracts for Difference (CFDs) - financial products allowing you to exchange the difference in an asset price with your broker. CFDs are margin traded instruments.and can offer the potential for amplified profits due to leverage, but it also comes with magnified risks like magnified losses. Let's delve into what CFDs are and both the potential advantages and inherent risks of CFD trading to help you decide if trading UBS Group shares with CFDs might be a suitable choice for you:

What Are Share CFDs?

Stock market trading often involves the buying and selling of shares representing ownership in publicly traded companies that are listed on stock exchanges like the New York Stock Exchange (NYSE) or the Nasdaq, or in the case of UBS Group shares on the Swiss Exchange.

When trading with Contracts For Difference (CFDs) on shares, you do not own the underlying shares. This means that you do not get any voting rights or other shareholders rights. With share CFDs, you speculate on its upwards and downwards price fluctuations by exchanging the difference in value between the opening and the closing price of your CFD position.

A key distinction of CFD trading lies in its use of leverage and margin. This allows traders to control a larger position size with a smaller initial investment. Instead of paying the full upfront cost of a stock, traders only need to commit a portion of the capital, known as the “margin”. This leverage magnifies both potential profits and losses, making CFDs a high-risk, high-reward opportunity.

What Are the Advantages of Trading UBS Group with CFDs?

Here are some of the biggest benefits of trading UBS Group through CFDs:

• No Ownership of the Underlying Stocks: Unlike traditional share ownership, CFDs on UBS Group let you speculate on price movements without directly owning the stock. This eliminates custody fees associated with holding actual shares. However, there are also fees associated with CFD trading.
• Shorting Possible: Because you do not own the underlying share of UBS Group, you can speculate on both rising and falling price movements through a variety of order types such as stop orders.
• High Liquidity: CFDs are highly liquid, granting traders the ability to execute trades promptly, potentially at their desired price point, making it easy and fast to trade UBS Group stock over the short-term.
• Flexible Trading Strategies: CFD trading unlocks a wide range of stock trading strategies. Unlike traditional stock purchases, CFDs offer greater flexibility, allowing traders of all risk tolerances and goals to find approaches that suit them.
• Relatively Low Minimum Deposit: CFD providers usually require a relatively small amount to get started with CFD trading.

What Are the Risks of Trading UBS Group with CFDs?

Let's now review some of the limits and risks of CFD trading:

• High Risk due to Leverage: While leverage can magnify your potential profits, it can also significantly amplify your potential losses, making CFDs a risky product, especially for beginner traders or those who do not fully understand and manage their leverage.
• Overnight Fees: Some stock trading strategies require you to keep your positions on UBS Group stocks overnight. Because of leverage and margin trading, you'll have to pay rollover fees, which makes CFDs less suitable for long-term trading.

How to Trade UBS Group CFDs: Popular Trading Strategies (Step by Step)

While making trading mistakes and facing losses are part of the trading process, traders with a more disciplined trading approach potentially have a greater chance of making profit than those without a plan. Here are some key steps to consider on how to start trading UBS Group CFDs:

• Understand How CFDs on Share Work, What is UBS Group & What Factors Influence its Share Price: Before diving in, you should invest time in thorough research to build a solid foundation for trading. This includes analysing UBS Group's financial health, development plans, current industry trends and challenges, and the specifics about CFDs. By understanding the specific risks and potential rewards associated with trading this company and using CFDs, you can ensure this approach aligns with your risk tolerance and overall trading goals.
• Decide How to Analyse UBS Group to Make Your Trading Decision: To make informed trading decisions about UBS Group, you can use two main market analysis approaches: technical analysis and fundamental analysis. Technical analysis focuses on historical price and volume data of UBS Group's stock, using charts and technical triggers to identify potential trends and trading opportunities. In contrast, fundamental analysis delves deeper, examining economic factors and UBS Group's health to assess its intrinsic value and potential discrepancies with its current market price.
• Write Your Trading Plan According to Your Trading Strategy: Your trading plan is your personalised roadmap for navigating UBS Group CFD trading. It should comprehensively outline your entry and exit points, risk management strategies, and emotional control techniques when trading. These elements will all depend on the specific trading style you choose. UBS Group trading strategies can include several types of trading, which can be further refined based on factors like economic data analysis, trading range identification, trend following, support and resistance levels, breakout opportunities, and navigating volatile markets.
• Trade Smarter by Adopting the Right Mindset: Understanding the psychological aspects of trading is crucial for successfully navigating UBS Group CFD trading. By acknowledging how emotions and behavioural biases through behavioural finance can influence your analysis and decision-making, you can develop the right mindset for disciplined trading.

For more tips on what traders should consider before trading stocks, read our guide: “Stock market Trading Tips”.

Now that you know about the various factors that can have an impact on UBS Group's stock price and how to trade UBS Group with CFDs, you can consider trading UBS Group share CFDs with Plus500.

UBS Group Price & Trading — Frequently Asked Questions (FAQs):

What are the potential reasons why you might want to trade UBS Group?

Over its extensive 160-year history, UBS has cultivated a prominent global presence. This deep experience navigating diverse financial markets across the world has fostered a network of strong relationships and deep expertise. Additionally, rising interest rates tend to benefit banks like UBS by bolstering their profitability.

Where are UBS Group's shares listed?

As of 2024, UBS Group AG shares are listed on both the Swiss stock market (SIX Swiss Exchange) and on Wall Street (New York Stock Exchange).

When can I trade UBSG shares?

The Swiss Stock Exchange operates from 6:00 AM to 10:00 PM CET (Central European Time) across various trading phases: pre-opening, opening auction, continuous trading, closing auction (with or without), and post-trading. The NYSE (New York Stock Exchange) is open from 9:30 AM to 4:00 PM Eastern Time (ET), consisting of a pre-market session and the main trading session. Note that trading hours for Contracts for Difference (CFDs) on Plus500 may differ from the underlying stock exchange hours.

How can I start trading UBS Group shares CFDs with Plus500?

If you have a well-defined CFD trading plan and strategy for trading UBS Group (UBSG), a CFD provider like Plus500 could be a suitable platform to execute your trades. Once ready, sign up with Plus500 and complete their verification process. Then, deposit funds to your account. Within the platform, navigate to the "Shares" section or use the search bar to find UBS Group (usually listed as UBSG). Choose "Buy" to go long or "Sell" to go short on UBS Group shares. Finally, you can use Plus500's risk management tools like stop-loss orders and take-profit orders to limit potential losses and lock in gains before placing your trade.

Does UBS Group pay a dividend?

Yes, UBS Group distributed a dividend to its shareholders. In 2023, the dividend was a total of $0.70 per share.

Who are UBS Group's main competitors?

UBS Group (UBSG.VX) faces competition from a wide range of established global financial institutions, including JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), Morgan Stanley (MS), Wells Fargo (WFC), HSBC (HSBA-L), and Charles Schwab (SCHW).