This article focuses on the main ways to invest in the Alibaba IPO, the initial public offering of the company’s shares, which will go public at the end of this week. In addition to the IPO as such, we also offer you the opportunity to invest in shares that depend on it and in which you can already invest by buying shares or trading. We proceed step by step and discover one by one the ways to invest in the IPO of Alibaba.
Buying Alibaba Shares in the Bank
At the moment it is not yet possible to buy Alibaba shares but you can book them by going to the big banks that are among the big investors in the operation. In fact, not all banks invest in the same shares, even though the Alibaba IPO has been widely publicized. The advantage of this method is that you can buy shares at the initial price, even before any sudden increases. The disadvantage is that large investors will be at the expense of small investors: there will be many requests from large investors leaving less space for the complexity of small. However, if the shares go up a lot during the first trades, they will be more easily sold even by large investors to make profit and then cash by reselling and putting back into circulation a good number of shares. To the small investor who can not book Alibaba shares, will almost certainly go much lower returns than those possible in a very good IPO.
Yahoo and Softbank
A trick to invest in Alibaba is to invest in investee companies. Yahoo and Softbank have a lot of capital invested in Alibaba, so a good IPO will also raise the price of these two companies. These two companies can already be invested in today through shares or CFDs, so keep an eye on them.
The method that we prefer is the Alibaba share CFD method. Through CFDs you can profit from Alibaba shares without going to the bank and without paying the high commissions they usually charge for consulting costs. Alibaba stock CFDs allow you to trade from the very beginning of the IPO so you can take advantage of the rise that may occur throughout the first day of trading. At the end of the day you can also resell to profit from what you have earned. CFDs have the additional advantage of being able to leverage and thus allow you to invest in many stocks but with a small budget. You can already trade Yahoo and Softbank stocks at the moment. It is already possible to invest in CFD Plus500 broker in this way
Why Should you Invest in Alibaba With CFDs?
So far we have already highlighted two advantages of CFD trading on Alibaba, but in reality there are several. The first advantage is the low commission, sometimes zero. The second advantage is the budget: you can invest more with less. Another important advantage is that you can invest in both the rise and the fall, without necessarily having to buy in advance. In fact, with online trading you can open a position downward from the start, as the first transaction. Remember that even if you don’t take the IPO tram, remember it for the next trades. Another advantage is the ability to familiarize yourself with the trading software through a demo with virtual money. In practice you can use the same platform to trade shares with real money, using virtual money. This is definitely an option to be taken into high consideration as practice is essential to acquire security with the medium and make effective choices in a short time. Sometimes, between an information and the opening of a position is optimal to spend as little time as possible, so as to exploit its effects.