Alibaba Spread Betting and Trading Guide with Live BABA Chart

Spread Betting
Also see Live Alibaba chart below.

Alibaba Spread Betting Guide

The Alibaba spread betting guide:





About Alibaba



  • Alibaba is a Chinese ecommence giant that was founded in 1999 by school teacher Jack Ma

  • Alibaba sees 80% of all Chinese online retail sales

  • Key parts of Alibaba include:

    • Taobao - China's answer to eBay
    • Tmall - China's answer to Amazon

  • 2013 sales were around $250bn - the equivalent of 3% of China's GDP

  • 2013 sales grew by 45% compared to 2012

  • The operating profit for the last 9 months of 2013 topped 40%



Where Can I Spread Bet on Alibaba?




You can put spread bets on Alibaba and thousands of other financial markets with any of these spread trading platforms:

Financial Spreads   > Financial Spreads

IG Index   > IG Index

InterTrader   > InterTrader

Spreadex   > Spreadex

Tradefair Account   > Tradefair

One thing to note is that this market may be offered by other providers not listed here.



Live Alibaba Chart








User Questions and Answers on Alibaba



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The Long-term Potential of Alibaba



The video below takes a quick look at the Alibaba stock.


Where Can I Get Live Spread Betting Prices and Charts for Alibaba?



The above chart gives a valuable guide.

Of course, for those that are spread betting on Alibaba, the companies mentioned above have platforms with real-time price updates and charts with more analysis options.

Example trading chart from Financial Spreads:

Example candlestick chart



Alibaba Spread Betting Guide

Alibaba Worked Financial Spread Betting Example



Should you decide to spread bet on US shares such as Alibaba then, looking at a platform like Capital Spreads, you would currently find a quote of $97.47 - $97.58.

As a result, you can bet on Alibaba to move higher than $97.58 or to move lower than $97.47.

With spread trading, you speculate on every unit the market moves up or down. In this case, with the Alibaba market a unit is $0.01 of the share's price movement.

With this example, let's say you choose to trade 4 for every cent Alibaba increases or decreases.


Speculating on the Alibaba Shares to Rise



If you were to go long of Alibaba at $97.58 and the shares increased then you might see the spread move to $97.94 - $98.05. Assuming this was the case, you could close your position for a profit at $97.94.

P&L = (settlement value of the market - opening value of the market) x stake per cent
P&L = ($97.94 - $97.58) x 4 per cent stake
P&L = $0.36 x 4 per cent
P&L = 144 profit

The markets do of course fall, if the shares had moved down to $97.18 - $97.29, you could close your trade to prevent further losses. If this were the case, you'd place a sell trade at $97.18.

Therefore, with the same 4 per cent stake:

P&L = (settlement value of the market - opening value of the market) x stake per cent
P&L = ($97.18 - $97.58) x 4 per cent stake
P&L = -$0.40 x 4 per cent
P&L = -160 loss


Speculating on the Market to Fall



One benefit of using a spread bet is that investors can short sell the markets, i.e. bet that the markets are going to go down.

(Note that you may have to wait a month or two after the IPO before you can take any net sell positions on this market.)

...but continuing the example...the original market was priced at $97.47 - $97.58.

If you were to go short of Alibaba at $97.47 and the shares decreased then you might see the price drop to $97.05 - $97.16. If that were to happen, you could close your trade by buying at $97.16.

P&L = (opening value of the market - settlement value of the market) x stake per cent
P&L = ($97.47 - $97.16) x 4 per cent stake
P&L = $0.31 x 4 per cent
P&L = 124 profit

Markets do of course rise, if the shares had moved up to $97.70 - $97.81, you might decide to close your trade to limit your losses. In that case, you would buy the market at $97.81.

So, with the same 4 per cent stake:

P&L = (opening value of the market - settlement value of the market) x stake per cent
P&L = ($97.47 - $97.81) x 4 per cent stake
P&L = -$0.34 x 4 per cent
P&L = -136 loss


Alibaba Rolling Daily prices taken as of 19-Sep-14.

One thing to note is that this is a rolling daily spread bet. This sort of trade doesn't have a set closing date and automatically rolls over to the next session. If it does rollover, then you might be charged a small overnight financing fee or receive a small credit. For more details, please see rolling daily spread trading markets.



Alibaba Practice Accounts



So what if you want to try things out? The firms listed below offer test accounts. I.e. accounts you can use to have a go at trading Alibaba without risking any money.

InterTrader   > InterTrader


Advert Financial Spreads Spread Betting - No Fees, No Commissions, Free Charts and Live Prices.
Spread Bet on Indices, Forex, Commodities, Shares and more. For details see Financial Spreads.


'Alibaba Spread Betting Guide' last update by James White, 20-Feb-2017





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This page: 'Alibaba Spread Betting Guide'
This Alibaba trading guide covers how and where to spread bet on the BABA shares, plus we have a live Alibaba stock chart and take a look at the more interesting market moves...go to top.



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