CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66.30 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
The Alibaba Group is a global technology corporation that controls an e-commerce empire spanning the whole of China under the Alibaba brand. As a result of China's severe restrictions on a variety of international e-commerce and retail platforms, Alibaba has emerged as the country's most important and comprehensive online marketplace.
Alibaba's primary and foremost business is Alibaba.com, an online marketplace that links importers in over 190 countries with Chinese exporters. Alibaba is owned by Jack Ma, and Jack Ma is the company's CEO. The acquisition of taobao.com, the most popular online shopping platform in China, was the first step in the company's development plans. Alipay.com, which is managed by Alibaba, is China's most popular online payment system and operates in a manner quite similar to that of PayPal. Alibaba is a Goliath in the field of Internet technology, and in addition to online marketing and cloud computing, the company also provides logistical operations. Alibaba is presently the third most valuable corporation in China and ranks 35th on the list of the most valuable companies in the world, according to its market capitalization of $247 billion.
The ability of Alibaba founder and chair Jack Ma to increase revenue over the past few years appears to be what is driving the company's appreciation. To be more precise, revenue has increased by more than 13 times in just six years, rising from $992 million in 2011 to nearly $23.5 billion as of the company's most recent annual results. That is astounding progress. With a market worth of around $314 billion in 2022, it ranked among some of the tech industry's biggest names. Strong sales growth, which experts predict will rise, is driving earnings higher. The crucial term is volatility. By October 2020, if you had invested $100 on the stock's first trading day in 2014, your assets would have amounted to $620. After six years, a profit of more than 620%. However, the stock's sharp rise and subsequent spectacular decline both turned out to be equally swift. The company had a steady upward trend as the economy grew until the COVID-19 pandemic hit globally. BABA stock price reached its peak in October 2020. Alibaba being a chinese company, where the lockdowns were long and strict could not withstand the pressure and started to decline. As the global economy is on a downturn, so is the stock market all over the globe.
More than 100 stocks of the world’s most renowned companies in your MT4 platform; low spreads, and lightning-fast execution. That’s what trading CFD stocks with Purple Trading is all about.
To start your Alibaba CFDs trading, first, you need to locate the ticker BABA on our Purple Trading Metatrader 4 platform. To open a trade, either double-click or press the new order button and the following window will pop up.
When you open our MetaTrader 4 platform and click on the BABA ticker, you'll observe that the minimal volume for trading Alibaba CFDs is one lot (1.0). If you trade one lot, you will gain or lose 10 USD for each 10 USD the stock makes as you are buying at a 1:1 ratio (1 lot equals 1 share). For example, you buy 5 lots at 100 USD, and Alibaba goes to 110 USD. Your total profit will be 50 USD (calculated as 10 USD (1000 cents) movement * number of lots/shares per the move). The same logic applies to calculating your profit or loss when entering a short position. Keep in mind that BABA is quoted in US dollars, therefore if your account is in EUR or another currency, your profit or loss must be converted to EUR at the current exchange rate. You can trade at the current market price (market execution) or utilize pending orders, (limit and stop orders). You can initiate the trade without the stop-loss and take-profit orders now and add them afterward.
A general explanation of the basic principles of CFD instruments
A description of the specifics and advantages of trading CFD shares
Detailed analysis of all the attributes of shares and their explanation
Detailed instructions for trading CFD shares
BONUS: An overview of the different sectors of the stock market
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CFDs with underlying asset a virtual currency pair are complex, extremely risky, and usually highly speculative and entail a high risk of losing all the invested capital and therefore are not appropriate for all investors. The values of virtual currencies values are subject to extreme price volatility and therefore may result in significant loss over a short period of time. Clients should not engage in trading in CFDs with underlying asset a virtual currency pair unless they have the necessary knowledge in this specific product; or if they can bear the loss of the entire invested amount. For more details please see the Risk Warnings and Disclosures.