How to Buy Naked Brand Group (NAKD) Stock

Whether you are buying Naked Brands as a day trade or to buy and hold, you must first begin by opening a brokerage account. Numerous brokers offering both free and commission-based trading platforms. Continue below for what to look for when selecting which broker to place your trades through.

Some factors to consider:

Cost (commission-free or commission-based)
The type of investor the firm typically serves
The markets served
Leverage availability
Research tools offered

Once you open your brokerage account and deposit funds, the next step is to determine how many shares of NAKD you want to purchase. Start by analyzing the current price of NAKD and determining how much capital you are willing to risk. Your investment can always decrease in value at any time.

Before you purchase shares of NAKD, you must first determine what order type you want to use. Choosing the appropriate order type will protect your capital and lead to smoother investing. Look at some of the typical terms you may stumble across as you place an order.

Bid
The highest price a buyer is willing to pay for a share of a stock is known as the bid price. 

Ask
The lowest price a seller is willing to accept for a share of stock is known as the ask price.

Spread
The difference between the bid price and the ask price is called the spread. Smaller market-cap companies like Naked Brands are likely to have a wider spread than large-cap companies like Facebook.

Limit Order
A limit order is an order that communicates to your broker that you want to buy a stock, but only below a specified price. For example, you might set a limit order that tells your broker that you want to buy NAKD stock at a maximum price of $1.50 a share. If the price of NAKD falls below $1.50, your broker will execute the order. If the price of NAKD rises above $1.50 a share, your broker will halt the order until prices drop again. This gives you more control over the price your order will fill at, which will help you protect more of your capital.

Market Order
A market order is an order to buy or sell shares at the current market price. This order will execute at the prevailing price, regardless of how volatile the price is. As a result, market orders give you less control over the specific price you’ll pay, but often allow you to buy or sell much faster than a limit order. 

Stop-Loss Order
A stop-loss order is a type of sell order that triggers once a stock drops to a predetermined price. For example, let’s say you bought 1,000 shares of NAKD stock at an average price of $1.50 a share. You might set a stop-loss order at $1.24. This means that if the price of NAKD falls to $1.24, your broker will automatically sell your shares. Stop-loss orders help you manage your risk by selling off your stocks when they reach a chosen low-end price point. 

Stop-Limit Order
A stop-limit order combines the characteristics of both a limit order and a stop-loss order. When you place a stop-limit order, you need to specify both an upper limit price and a lower stop price. For example, if you’re buying NAKD, you might set a limit price of $1.75 and a stop price of $1.50.
If the price of NAKD rises above $1.50, your stop-limit order converts to a limit order. From here, your broker will fill the order as long as NAKD stock can be purchased for $1.75 a share or less. If the price rises above $1.75, your broker will stop filling the order. This gives you the investor more control over the price that your order gets filled at. 

Now that you know the different order types and the basic terms, it’s time to buy NAKD. Select your order type, hit "buy," and hang on for the ride. Congratulations!