Alibaba Spread Betting Guide





Also see Live Alibaba chart below.



Where Can I Spread Bet on Alibaba?

You can trade on Royal Mail by using an account with these trading platforms:

Financial Spreads ETX Capital Spreadex IG City Index
Dow Jones (Wall Street) Shares Financial Spreads Dow Jones (Wall Street) Shares ETX Capital Dow Jones (Wall Street) Shares Spreadex Dow Jones (Wall Street) Shares IG Dow Jones (Wall Street) Shares City Index Dow Jones (Wall Street) Shares
S&P 500 Shares Financial Spreads S&P 500 Shares ETX Capital S&P 500 Shares Spreadex S&P 500 Shares IG S&P 500 Shares City Index S&P 500 Shares
NASDAQ 100 Shares Financial Spreads NASDAQ 100 Shares ETX Capital NASDAQ 100 Shares Spreadex NASDAQ 100 Shares IG NASDAQ 100 Shares City Index NASDAQ 100 Shares
You may also be available to spread bet on Dow 30 companies other firms. Also see spread betting comparison notes.

Live Alibaba Chart




Live Alibaba Chart





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 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:

Alibaba Spread Betting Guide - Example Chart



Alibaba Spread Betting Example

Alibaba Spread Betting Guide
Should you decide to spread bet on US shares such as Alibaba then, looking at a platform like IG, 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.



User Questions and Answers on Alibaba

Leave a Reply