#bstockscis @BinanceCIS
How much exposure to Tesla can you get even with $5? š
Letās break it down with a simple example to understand how fractional ownership works.
Imagineāpurely for calculationāthat $TSLAB
costs $340.
If I have $5, I donāt need to have $340 to get started.
The math is simple:
$5 Ć· $340 = 0.0147
So $5 is approximately 0.0147 shares.
Now letās increase the amount:
šµ $5 ā 0.0147 shares
šµ $25 ā 0.0735 shares
šµ $50 ā 0.1471 shares
šµ $100 ā 0.2941 shares
The formula is very simple:
Investment amount Ć· share price = fractional position
Now letās see what happens when the price changes.
If my $50 position increases by 10%:
$50 Ć 1.10 = $55
If the price drops by 10%:
$50 Ć 0.90 = $45
So fractional ownership does not remove market risk. Your fractional position still changes along with the assetās price.
What changes is something elseāyour investment amount is something you can choose yourself.
Instead of thinking:
āI need $340 to buy a whole share.ā
you can think:
āHow much am I really willing to invest?ā
That flexibility in setting the position size is, to me, one of the most interesting features of fractional ownership.
And one important clarification: the $340 in this post is just a hypothetical price to explain the mechanism, not the current price of $TSLAB
@BinanceCIS
#bStocksCIS
How much exposure to Tesla can you get even with $5? š
Letās break it down with a simple example to understand how fractional ownership works.
Imagineāpurely for calculationāthat $TSLAB
costs $340.
If I have $5, I donāt need to have $340 to get started.
The math is simple:
$5 Ć· $340 = 0.0147
So $5 is approximately 0.0147 shares.
Now letās increase the amount:
šµ $5 ā 0.0147 shares
šµ $25 ā 0.0735 shares
šµ $50 ā 0.1471 shares
šµ $100 ā 0.2941 shares
The formula is very simple:
Investment amount Ć· share price = fractional position
Now letās see what happens when the price changes.
If my $50 position increases by 10%:
$50 Ć 1.10 = $55
If the price drops by 10%:
$50 Ć 0.90 = $45
So fractional ownership does not remove market risk. Your fractional position still changes along with the assetās price.
What changes is something elseāyour investment amount is something you can choose yourself.
Instead of thinking:
āI need $340 to buy a whole share.ā
you can think:
āHow much am I really willing to invest?ā
That flexibility in setting the position size is, to me, one of the most interesting features of fractional ownership.
And one important clarification: the $340 in this post is just a hypothetical price to explain the mechanism, not the current price of $TSLAB
@BinanceCIS
#bStocksCIS