Guide to Spread Betting & Trading CFDs on Alibaba with Live Charts & Prices
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Alibaba Spread Betting and CFD Trading Guide

Alibaba Spread Betting and CFD Trading Guide


About Alibaba

  • Alibaba was founded Jack Ma, a school teacher in Hangzhou (near Shanghai), in 1999

  • Alibaba is China's biggest ecommerce firm and accounts for about 80% of all online retail sales in China

  • Alibaba includes Taobao, China’s leading e-commerce site, which is an eBay-like C2C site

  • Alibaba includes Tmall, which is China’s largest Amazon-like B2C site

Spread Bets on Alibaba Shares


You can spread bet on Alibaba with: This market may be available with other firms. Note that we also have a live Alibaba chart.

CFDs on Alibaba Shares


You can trade CFDs on the Alibaba share price with: This market may be available with other firms.


Where Can I Find Live Prices and Charts for Alibaba?


The interactive chart below offers a good view of the Alibaba market.



The Plus500 chart above usually shows the underlying Alibaba futures market (not the spot price).

If you'd like to look at real time spread betting prices/charts for Alibaba, you might need a financial spread betting account.

Of course, if you do decide to trade, please remember that financial spread trading and contracts for difference do involve a high degree of risk to your funds and it is possible to incur losses that exceed your initial deposit.

For more details, see Advanced Alibaba Trading Charts below.


Alibaba Analysis & News


Date Trading Update
03-Oct-17 [11:49am]

Alibaba Share Price Update:



Rising Share Price The US stock is above the 20 day MA of $175.76 and above the 50 day MA of $168.30.
  • Closing Price: $179.20
  • Rising Share Price 1 Day Change: Up 0.17%
  • Rising Share Price 5 Day Change: Up 3.76%

Long-Term BABA Data

  • 52 Week High 52 Week High: $180.87
  • 52 Week Low 52 Week Low: $86.01
  • EPS(i): $2.96
  • PE Ratio(i): 60.55
  • Volume / Average Volume(i): 0.008m / 17.597m
  • Market Cap(i): $458,959m
  • Shares Outstanding(i): 2,561m
Price data from Google Finance. Also see Live BABA Share Price & Charts and About Alibaba for more information.

Update by Jenna Cutly, Editor, CleanFinancial
14-Dec-15 [9:27am] Alibaba Breaks Trendline after South China Morning Post Purchase



Update by IG Index
27-Jan-15 [9:44am]

Alibaba Needs to Increase Shareholder Transparency and Expand



With the tech firm trading at a much higher multiple of expected sales than its peers, IG talk to Cyrus Mewawalla, MD at CM Research, about whether shareholders have been given the full picture about the risks involved.

The company's management is looking to grow in the long term, with mobile payments a key potential market and Paypal an acquisition target.



Update by IG Index
03-Nov-14 [5:55pm]

Can Alibaba Impress with its First Results Since the IPO?



Ahead of the online retailer's first set of results since floatation, IG talks to RJ Hottovy from Morningstar about what the figures may include.

Particular interest will be paid to expansion plans and the prospect of an online payment tie-up with Apple.



Update by IG Index
22-Sep-14 [3:02pm]

Finding Tight Spreads on Alibaba



Looking at the early pricing Financial Spreads, IG, Capital Spreads and City Index all have 8¢ - 9¢ spreads.

CMC are running a 13¢ spread and ETX have a 16.5¢.

At the moment then, you'd probably trade with one of the firms offering 8¢ - 9¢ spreads.

Having said that, keep your eye on the spreads, it's unlikely to stay this clear cut.

I'd expect CMC and ETX to fall in line with the other firms sooner rather than later.

Also, it's easy to see some of the other firms with tighter pricing actually widening their spreads if the market gets nice and volatile.

Update by Jacob Wood, Editor, CleanFinancial
22-Sep-14 [11:13am]

Live Alibaba Charts



We've now added a live chart for BABA, see Live Alibaba chart.

Update by Jacob Wood, Editor, CleanFinancial
22-Sep-14 [9:10am] The Story of the Alibaba IPO

We covered many of the grey market moves in the lead up to the IPO.

For more details on how the IPO panned out, please see the Story of the Alibaba IPO.

Update by Jacob Wood, Editor, CleanFinancial
19-Sep-14 [6:59pm]

Alibaba CFD and Spread Betting Markets Live



Now the shares have listed on the NYSE, spread betting and CFD markets based on the share price are also live and currently trading at $93.38 - $93.49 with Financial Spreads and InterTrader.

The Good News

The pricing is much tighter compared to the IPO markets, e.g. some firms are offering it with a $0.09 spread, i.e. 0.10% spread (or 0.05% either side of the underlying market).

With the IPO market, there was normally a 10pt spread, i.e. ie a spread of $10bn or 5%.

The Bad News

You can buy the market but you can't short sell it just yet.

Spread betting companies have problems laying off short positions on American shares and therefore normally wait for the market to calm down before taking on short positions from clients. It might be another month before you can short the stock.

Of course, if you already have an open 'buy trade' on Alibaba then you will be able to close (sell) your trade.

Update by Jacob Wood, Editor, CleanFinancial

Readers please note:

Professional Charts for Alibaba


Even though the charting packages normally differ across the various providers, in order to help your analysis, they generally come with features that include:
  • A host of different intervals such as 5 minutes, 30 minutes, 1 day etc.
  • Various chart views such as line, candlestick and OHLC charts
  • Drawing features and options such as Fibonacci Fans, Time Zones and Arcs

Charts with FinancialSpreads also offer more advanced aspects like:
  • Custom Indicators and Back Testing tools
  • Helpful chart overlays such as Parabolic SAR, Ichimoku Kinko Hyo, Price Channels etc.
  • A choice of indicator charts such as Relative Strength Index (RSI), Standard Deviation, Qstick etc.
  • Automatic email alerts when a market reaches a particular level

Sample equities chart

Alibaba Trading Guide - Example Chart


The financial spread betting firms listed below provide account holders with real-time prices/charts:
Advert: Alibaba Spread Betting and CFD Trading Guide, sponsored by FinancialSpreads.com.
You can spread bet on Alibaba with Financial Spreads.

Where Can I Spread Bet on Alibaba for Free?


Trading isn't risk free, however, if you would like to open a (free) Practice Account, which lets you trial spread trading, please see below for further details.

When looking at which trading option is right for you, also remember that in the UK, financial spread betting is tax free*, i.e. it is exempt from stamp duty, income tax and capital gains tax.

If you're looking for a low cost financial spread betting platform, keep in mind that you are able to take a view on Alibaba with no brokers' fees or commissions via providers like:

Free Demo Account


If you're looking for a free Practice Account / Test Account that lets you try financial spread betting, and markets like the FTSE 100, USD/JPY, EUR/GBP and Alibaba, then you can always take a look at: Each of these firms currently provide a free Practice Account which investors can use to practice with trading orders, try out new theories and analyse professional level charts.


How to Spread Bet on Alibaba

How to Spread Bet on Alibaba?


If you want to speculate on Alibaba then one solution is to spread bet on the share price.

Looking at a site like InterTrader, you can see they are currently showing the Alibaba Rolling Daily market at $93.37 - $93.48. As a result, an investor could put a spread bet on the Alibaba share price:

  Alibaba Spread Betting Example Rising above $93.48, or
  Alibaba Spread Trading Example Falling below $93.37

With spread betting on US shares you trade in £x per cent. So, if you decided to have a stake of £3 per cent and the Alibaba shares move $0.25 then that would alter your profits (or losses) by £75. £3 per cent x $0.25 = £75.

You can also trade this market in Euros or Dollars, e.g. €x per cent.

Rolling Daily Equities Markets

Note that this is a Rolling Daily Market and therefore unlike a futures market, there is no closing date. Therefore, if you decide not to close your trade by the end of the day, it will simply roll over to the next session.

If a trade is rolled over and you are speculating on the market to:

  Alibaba Spread Trading Example Move up - then you'll often be charged a small financing fee, or
  Alibaba Spread Trading Example Move down - then you'll often receive a small payment to your account

For a more detailed breakdown of Rolling Daily Markets please read our article Rolling Daily Spread Betting.


Alibaba Rolling Daily Spread Betting Example


Now, if we take the above spread of $93.37 - $93.48 and assume that:
  • You have analysed the shares, and
  • Your analysis leads you to think the Alibaba shares are likely to increase and go higher than $93.48
Then you may decide that you want to buy at $93.48 and risk, for the sake of argument, £3 per cent.

With such a bet you win £3 for every cent that the Alibaba shares increase and move above $93.48. Nevertheless, such a bet also means that you will make a loss of £3 for every cent that the Alibaba market falls lower than $93.48.

Looked at another way, if you were to buy a spread bet then your P&L is found by taking the difference between the final price of the market and the initial price you bought the market at. You then multiply that price difference by the stake.

With this in mind, if after a few days the shares started to move upwards then you could choose to close your trade and therefore lock in your profits. So if the share price rose then the spread, set by the spreads firm, might be adjusted to $93.99 - $94.10. In order to close your position you would sell at $93.99. Accordingly, with the same £3 stake this trade would make you a profit of:

Profits (or losses) = (Closing Price - Opening Price) x stake
Profits (or losses) = ($93.99 - $93.48) x £3 per cent stake
Profits (or losses) = $0.51 x £3 per cent stake
Profits (or losses) = 51¢ x £3 per cent stake
Profits (or losses) = £153 profit

Trading shares, whether by spread trading or otherwise, is never simple. In this case, you wanted the share price to rise. Naturally, the share price could decrease.

If the tech shares fell then you might choose to close your position to stop any further losses.

Should the market fall back to $93.02 - $93.13 then this means you would settle your trade by selling at $93.02. Accordingly, your loss would be:

Profits (or losses) = (Closing Price - Opening Price) x stake
Profits (or losses) = ($93.02 - $93.48) x £3 per cent stake
Profits (or losses) = -$0.46 x £3 per cent stake
Profits (or losses) = -46¢ x £3 per cent stake
Profits (or losses) = -£138 loss

Note: Alibaba Rolling Daily equities market taken as of 19-Sep-14.


Advert: Alibaba Spread Betting and CFD Trading Guide, sponsored by FinancialSpreads.com.
You can spread bet on Alibaba with Financial Spreads.


Alibaba in Numbers - Why Investors Like Aliababa


Unlike a number of US tech firms that have large numbers of users but poor financials, the Alibaba sales data is impressive:
  • In July 2014 Alibaba increased its valuation of itself from $117bn to $130bn

  • 2013 Sales:

    • Rose by 45% year-on-year
    • Were almost $250bn (more than the combined sales of Amazon and eBay)
    • Were roughly 3% of China’s GDP
    • Topped $5.7bn on Singles’ Day (11 Nov 2013)
    • In the last 9 months of 2013, operating profit was in excess of 40%

Story of the Alibaba IPO


Here we take a look at the lead up to Alibaba's listing on the New York stock exchange.

Date Trading Update
20-Sep-14 [11:52am]

Alibaba IPOs at $231bn



We certainly had an interesting first day of trading.

The stock was initially offered at $68 but as it hit the stock market all the automatic trading orders kicked in and the market immediately spiked to $92.70.

The stock eventually closed at $93.89.

According to the New York Times, that put the firm's market capitalisation, at the end of the first day of trading, at $231bn.

For anyone trading the grey market, that meant the market would be settled at 231 - good news for almost anyone buying the market.

Alibaba Market Updates

This is the last of our IPO posts, please see for updates on trading the Alibaba stock.

Update by Jacob Wood, Editor, CleanFinancial
19-Sep-14 [4:00pm] The IPO is Finally Here!

At $68 per share, they are raising $21.8bn and that values the firm at $167.6bn.

The valuation is below what many believe to be Alibaba's true value of around $200bn (or more on some spread betting sites).

Trading in Alibaba should start within the first couple of hours of the NYSE open.

Alibaba at $87-89 per share!

In the latest news, Alibaba was looking like opening significantly above its IPO price, somewhere around $87-89 per share.

If so, this could likely trigger underwriters to use an option to sell more shares and put the value of the listing around $25bn, the largest ever.

There is some risk that Alibaba's IPO could cause some liquidation of other US stocks as investors aim to free up some money.

Update by Jacob Wood, Editor, CleanFinancial
19-Sep-14 [12:05pm] Alibaba Stock Holding Firm

It's not long before the Alibaba (ticker BABA) stock opens for 'trading proper' on the NYSE.

The IPO grey market is trading just a touch down from yesterday at 219 - 229, and suggesting the BABA market cap will close today around $219 - $229bn.

You can still take a position on this market although note that the spread betting and CFD markets on Alibaba share price should be up and running by around 2.30 / 3pm UK time.

Also, note that the spread on those markets will be a lot tighter than then IPO market.

Update by Jacob Wood, Editor, CleanFinancial
18-Sep-14 [7:02pm] There She Goes!

The Alibaba IPO market is now trading up at 225 - 235.

With a midpoint of 230, that suggests that investors think that, by the end of play on Friday, Alibaba will have a market cap of $230bn.

That's the highest valuation I've seen.

(Price on Financial Spreads and Capital Spreads).

Update by Jacob Wood, Editor, CleanFinancial
18-Sep-14 [6:32pm]

Beware the Big IPO!



There's an interesting article on Bloomberg which looks at how 4 of the last 5 largest listings on US stock markets fell more than 17% in their first year of going public.

Read, 'Beware Past Mega-IPOs Tumbling'.

Update by Jacob Wood, Editor, CleanFinancial
17-Sep-14 [4:18pm] IPO Market Still Bouncing Around

The Financial Spreads and InterTrader Alibaba IPO markets are now trading up at 210 to 220, i.e. suggesting a market cap of $215bn when the shares, which IPO tomorrow, close.

If you look at the chart, the market has been swinging a lot this week, trading as high as 225 ($bn) and as low as 204 ($bn).

At least I'm not the only one who hasn't got a clue how to value the firm.

Update by Jacob Wood, Editor, CleanFinancial
11-Sep-14 [3:34pm]

Alibaba IPO 'Exciting' but Communication Remains Key



With the largest IPO ever attempted and a proven business model, Alibaba may be an interesting proposition for investors.

In this quick video, IG talks to Justin Urquhart Stewart from Seven Investment Managament about the challanges the Chinese company faces in building confidence.



Update by IG Index
08-Sep-14 [11:06am] Traders Expecting a Big Debut for Alibaba

Over the weekend we reported that Alibaba Group Holding will probably IPO around the $162bn mark (see below).

That was well below Friday's grey market forecast of $221bn, however the grey market has cooled off, it is now back at 205 ($205bn).

Of course, if China's largest ecommerce firm does IPO at around $162bn and the grey market has only dropped to 205 ($205bn), then that means traders are expecting a very healthy first day of trading.

It's not difficult to foresee significant interest in the shares but it might take more than a genie to add $43bn to the market cap in one day.

(The grey market closes at the end of the first day of trading).

Update by Jacob Wood, Editor, CleanFinancial
07-Sep-14 [3:13pm]

Alibaba Set to List on 19 Sept with Shares at $60-$66 and a Market Cap of $162bn



Alibaba Group Holding has said its shares will probably IPO at around $60-$66.

Although we're getting closer to the firm being listed, we're not there yet. The company kicks off an international investor roadshow this week.

They aim to announce the final price on 18 Sept and the company should go public on 19 Sept.

IPO Valuation

The group plans to sell $24.3bn worth of shares (Facebook raised $16bn).

According to Bloomberg such a valuation would give it a market capitalisation of $162bn.

While $162bn is certainly a lot lower than some of the valuations we have seen this week, it would still make it the third most valuable internet firm after Google ($395bn) and Facebook ($197bn).

Nevertheless, investors trading the Alibaba IPO financial spread betting market should remember that the market is settled at the end of the first day of trading on the stock exchange.

With companies (and the advising banks) liking well received initial public offerings, it's not difficult to imagine the share price being set fairly low. And therefore we could see a solid jump on first day of trading.

That certainly happened with the Royal Mail and Twitter IPOs (but not with the somewhat bungled Facebook IPO).



Update by Jacob Wood, Editor, CleanFinancial
05-Sep-14 [12:35pm]

An Over Simplified Valuation of Alibaba



Looking at the 2013 reports we can see that Alibaba had sales of nearly $250bn across all of its sites. That's more than Amazon and eBay put together.

The Amazon market cap is about $157bn and the eBay market cap is about $68bn. Combined, that's a market cap of $225bn.

The Alibaba grey market is up 1pt ($1bn) on yesterday and trading at 216 - 226, i.e. suggesting a valuation of $221bn. That's pretty close to the combined value of the two American firms.

Key Upside

For me the key upside comes from the fact that a lot of China still isn't online. At the moment it's still the wealthier middle classes that are contributing to the impressive sales figures.

That suggests a lot of room to grow.

(and I really like the large margins that Alibaba currently has, although no doubt these will come down in time).

Key Downside

As commented on below, for me, this is all about corporate regulations, the complex ownership structure and ultimately how much the Chinese government wants to control Chinese ecommerce.

The Chinese government is becoming increasingly liberal but we know that they are more than happy to lay down the law when it comes who does what, where and when on the internet.

This key negative will remain in place for a long time.

Conclusion

I'm still pondering on this one. Like any investor...I don't want to miss out. However I'm struggling to measure the risk of the seemingly opaque corporate governance.

Update by Jacob Wood, Editor, CleanFinancial
04-Sep-14 [12:49pm]

Alibaba IPO Valuation Jumps 10% Higher



The Financial Spreads Alibaba IPO grey market opened on 7 April.

Looking at the weekly chart, the valuation has certainly had a bit of a spike over the last week.

Up until the end of August, the market had drifted around the $195-200bn area.

This week the market has jumped 10% higher to $220bn.

Alibaba IPO Chart (April to September 2014)


Update by Jacob Wood, Editor, CleanFinancial
03-Sep-14 [4:56pm]

Where Can You Trade Alibaba Shares?



If you're looking to speculate on the Alibaba share price then you'll have to wait until the stock is actually listed on the New York Stock Exchange.

Once that's happened, provided there isn't a Facebook-style-IPO-nightmare, there's often a delay of 1-3 hours as the various price feeds pick up the new market.

After that delay, I'd expect to be able spread bet / trade CFDs on the Alibaba share price with the usual suspects, i.e. the firms listed above.

Update by Jacob Wood, Editor, CleanFinancial
03-Sep-14 [2:17pm]

How to Spread Bet on the Alibaba IPO



As with many markets, you can speculate on the upcoming Alibaba IPO.

E.g. Financial Spreads are currently offering their Alibaba IPO grey market at 205.0 - 215.0.

With this market each point represents $1bn Alibaba's market capitalisation at the end of its first day of trading on the New York Stock Exchange.

Therefore, you could spread bet on the Alibaba IPO:

  Alibaba IPO Trading Example Closing with a market cap of more than $215bn, or
  Alibaba IPO Spread Trading Example Closing with a market cap of less than $205bn

At the end of its first day of trading.

With this grey market you trade in £x per point. Therefore, if you decide to have a stake of £4 per point and the Alibaba market moves by 23 points ($23bn) then that would alter your profits (or losses) by £92. £4 per point x 23 points = £92.


Alibaba IPO Market Cap Trading Example


If you consider the above spread of 205.0 - 215.0 and assume:
  • You have done your analysis of the markets, and
  • Your analysis suggests that Alibaba will close the first day of trading with a market cap of more than $215bn
Then you may choose to buy at 215.0 for a stake of, let's say, £15 per point.

With this spread bet you make a profit of £15 for every point that the Alibaba market closes higher than $215bn.

Nevertheless, such a bet also means that you will make a loss of £15 for every point Alibaba closes lower than $215bn.

Put another way, should you buy a spread bet then your profits (or losses) are found by taking the difference between the closing price of the market and the initial price you bought the spread at. You then multiply that price difference by your stake.

Therefore, if, at the end of the first day of trading, Alibaba finished with a market cap of $224.0bn, then:

P&L = (Settlement Price - Opening Price) x stake
P&L = (224.0 - 215.0) x £15 per point stake
P&L = 9.0 x £15 per point stake
P&L = £135 profit

Spread betting may not go to plan. In this example, you wanted the Alibaba IPO market to go up. Of course, it might go down.

If the firm closed with a market cap of just $207.0bn, you would end up losing this spread bet.

P&L = (Settlement Price - Opening Price) x stake
P&L = (207.0 - 215.0) x £15 per point stake
P&L = -8.0 x £15 per point stake
P&L = -£120 loss

Note: Alibaba Market Cap grey market correct as of 03-Sep-14.

Update by Jacob Wood, Editor, CleanFinancial
01-Sep-14 [9:10am] The Largest US IPOs Since 1995

Largest US IPOs Since 1995


Update by Jacob Wood, Editor, CleanFinancial
12-May-14 [3:30pm] Alibaba IPO Grey Market Update

Financial Spreads have been running their Alibaba market for over a month now and although it doesn't look heavily traded, looking at the chart below there is some support around the $200bn mark.

The market is currently trading at 197 - 207, i.e. Financial Spreads estimate the firm will be worth $197bn - $207bn when the market closes on the day the firm IPOs.

Alibaba IPO Market Cap - Grey Market


Update by Jacob Wood, Editor, CleanFinancial
10-May-14 [11:10am]

Alibaba Confirms US Float



The Chinese internet retail giant has confirmed its intentions to float in the US.

For more details The Economist has put out an interesting article, Alibaba's IPO, from bazaar to bonanza.

Update by Gordon Childs, Editor, CleanFinancial
10-Apr-14 [6:23pm]

Alibaba IPO Grey Markets



As is often the case with big IPOs, a number of spread betting firms are now offering a grey market on the Alibaba IPO:

(Other providers might also be offering a market).

Also see the Wikipedia page for a basic overview of Alibaba group.


How Do You Trade the Alibaba Grey Market?



Financial Spreads are offering a fairly typical grey market which is based on the market capitalisation of Alibaba at the end of the first day of trading.

The first day of trading, is the first day of unconditional trading, i.e. when Alibaba officially list on a stock exchange.

At this point it's likely that it will be either the New York Stock Exchange or the NASDAQ but that has not been confirmed yet.

The market is currently at 174 - 184 where each point represents $1bn.

That means that Financial Spreads are estimating that the Alibaba market cap, at the end of the first day of trading, will be $174 - 184bn.

And naturally that would make it one of the largest IPOs of all time.

With the price at 174 - 184, if you think the Chinese internet giant will be higher than $184bn then you could buy at 184.

Of course, if you think the tech markets are getting increasingly nervous and the stock will get a poor reception from investors then you can sell at 174, i.e. speculating that the market cap will close lower than $174bn on the first day of trading.


When is the IPO?

At this point, the date has not been set so most firms are saying 'All open trades will be void if there is no floatation by 31 Dec 2014.' If in doubt, check with your provider.

Update by Jacob Wood, Editor, CleanFinancial

Readers please note:

Trading Risk Warning
'Alibaba Spread Betting and CFD Trading Guide' edited by Jacob Wood, updated 03-Oct-17

For related articles also see:





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