Spread Betting on the Alibaba Share Price (BABA)

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Financial Spreads: Spread Betting and CFD Trading

Losses can exceed deposits

Where Can I Spread Bet on Alibaba?

FinancialSpreads provides clients with a wide range of shares spread betting and CFD markets including Alibaba, AstraZeneca, Chevron and E.On, plus a selection of other international equities.

Where Can I Access Live Prices for the Alibaba Market?

Financial Spreads provides clients with real-time prices on more than a thousand markets like Alibaba and a wide range of other shares, indices, forex and commodities prices.

Where Can I Get Live Alibaba Charts?

With FinancialSpreads clients can look at live trading charts for Alibaba and numerous other spread trading and CFD markets.

Along with different chart types, the charting package also comes with a variety of advanced functions. These include:
Sample share candlestick chart:

Shares Spread Betting Charts



How to Spread Bet on Alibaba

As an example, let's say you log on to the Financial Spreads website and the trading platform is showing a quote of:

  Alibaba Rolling Cash Sell

8864.0
Buy

8872.0


Here is a brief example of how the market works

The Market:Alibaba Rolling Cash
The Spread Betting Price:8864.0¢ - 8872.0¢
How the Market Works:You can speculate on the Alibaba Rolling Cash market to go:

  Spread Betting Higher than 8872.0¢, or
  Spread Betting Lower than 8864.0¢

This is a Rolling spread betting market which means that there is no final closing date for this trade. If you haven't closed your position and the session ends then your trade will automatically roll over into the next trading day.

Note: if a trade rolls over then you will normally either be charged or receive interest for overnight financing depending on whether you are speculating on the market to move lower or higher. For further details also see Rolling Spread Betting.
Points (Units) Traded:Financial spread bets on the Alibaba market are made in £x per cent price movement.

E.g. if Alibaba moves by 45.0¢ then you would lose / win 45 multiples of your stake.
Stake (Trade Size):You decide how much you are going to risk per cent, e.g. £2 per cent, £8 per cent, £10 per cent etc.
Short Staking Exercise:If, for example, your stake is £4 per cent and Alibaba moves 23.0¢, you would lose/win £4 per cent x 23.0¢ = £92.


Spread Trading Example - Buying Alibaba

Spread trading on the equity to move higher

You Consider Whether to Go Long or Short: Alibaba moving:

  Spread Betting Higher than 8872.0¢? or
  Spread Betting Lower than 8864.0¢?

Let's Assume You Decide to Buy:   Spread Betting Higher than 8872.0¢
You Decide How Much to Risk, Let's Assume You Select: £3 per cent
Now What?
  • You make a profit of £3 for every cent Alibaba increases higher than 8872.0¢
  • You lose £3 for each cent Alibaba pushes below 8872.0¢
When Betting on a Market to Go Up Your P&L = (Settlement Price - Initial Price) x stake
 
Scenario 1
Alibaba pushes higher and the spread betting market moves to 8923.5¢ - 8931.5¢, i.e. the market moves to:   8923.5   8931.5
Close and Take Your Profit? You may choose to leave your bet open or close it to lock in your profit. In this example you choose to close your position and sell at 8923.5¢.
Your P&L = (Settlement Price - Initial Price) x stake
(8923.5¢ - 8872.0¢) x £3 per cent
51.5¢ x £3 per cent
Your P&L = £154.50 profit
 
Scenario 2
Alibaba drops and the financial spread betting market is adjusted and moved to 8826.8¢ - 8834.8¢. Therefore you would see this on Financial Spreads:   8826.8   8834.8
Restrict Your Loss? At this point, you may choose to keep your spread bet open or close it, i.e. close your position and restrict your loss. For this example, you decide to close your position by selling the market at 8826.8¢.
Your P&L = (Settlement Price - Initial Price) x stake
(8826.8¢ - 8872.0¢) x £3 per cent
-45.2¢ x £3 per cent
Your P&L = -£135.60 loss


Worked Example - Taking a Short Position on Alibaba

Financial spread betting on the equity to go down in value

You Now Decide to Buy or Sell: Alibaba to move:

  Spread Betting Higher than 8872.0¢? or
  Spread Betting Lower than 8864.0¢?

Let's Say You Want to Sell:   Spread Betting Lower than 8864.0¢
You Decide Your Stake Size, Let's Assume You Opt For: £2 per cent
What Next?
  • You lose £2 for each cent Alibaba moves higher than 8864.0¢
  • You make a profit of £2 for each cent Alibaba decreases lower than 8864.0¢
When You Sell a Market Your P&L = (Initial Price - Settlement Price) x stake
 
Scenario 3
Alibaba slips and the market is revised and moved to 8791.7¢ - 8799.7¢, so you'd see:   8791.7   8799.7
Time to Lock in a Profit? At this point, you may decide to let your bet run or close it, i.e. close your position to lock in a profit. In this instance you opt to settle your position by buying the market at 8799.7¢.
Your P&L = (Initial Price - Settlement Price) x stake
(8864.0¢ - 8799.7¢) x £2 per cent
64.3¢ x £2 per cent
Your P&L = £128.60 profit
 
Scenario 4
Alibaba increases and the spread trading market is adjusted to 8912.5¢ - 8920.5¢. Therefore you'd see this on Financial Spreads:   8912.5   8920.5
Time to Limit the Loss?You may decide to leave your trade open or close it and restrict your loss. In this example you choose to settle your position and buy the market at 8920.5¢.
Your P&L = (Initial Price - Settlement Price) x stake
(8864.0¢ - 8920.5¢) x £2 per cent
-56.5¢ x £2 per cent
Your P&L = -£113.00 loss

Where Can I Practice Financial Spread Betting on Alibaba?

Financial Spreads offers a free Demo Account that allows investors to try out new strategies, try out CFD trading and spread betting, check real-time charts and test new trading orders on markets like Alibaba.

The Financial Spreads Demo Account offers access to a large variety of markets including currencies, stocks, commodities and indices.

Open a Free CFD Trading and Spread Betting Demo Account


More on Alibaba Group Holding Ltd (BABA)



The ticker code for Alibaba is 'BABA', for more news and data on the American firm, also see: Financial Spreads is not responsible for the content of external / third party websites.


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