No, you can relax, this is NOT the famous literary and cinematic character come to life in the form of a binary option (which come to think of is mostly imaginary itself, with the only real result being profits), but rather, it is an online trading giant based in China, starting to make great strides into the western world.
It seems that more than a few internet based companies start out in someone’s garage or small apartment, and Alibaba is no different, and in a mere 15 years its gone on to many bigger and better things.
The company was initially formed in late 1998 in founder’s Jack Ma’s apartment in Hangzhou, China, but officially established a few months later in April 1999; it began as a business-to-business online retailer and while that is still its main official aim, it has now moved well past that stage and can easily be compared to other online retail giants such as Amazon and Ebay.
Initially focusing on the Chinese market achieved profitability within 2 years of being established, moving on to other Asian markets, in 2003 Alibaba formed Taobao was formed with the intent of it being a sister site of sorts to Alibaba, with the primary aim being a business-to-consumer or consumer-to-consumer site, very similar to Ebay.
Along with taobao, the company also established Alipay as a payment platform.
Within a few years, Alibaba continued to grow its assets, including a takeover of the Chinese brand of Yahoo!, they continued making headway as a technology company, striving to grow its online presence by developing or purchasing any solutions to aid that growth, including the formation of smaller sister sites, an R&D institute, a cloud computing company, even expanding into the creation of mobile devices which carry its own mobile operating system, something very few companies dare to do unless they are extremely financially viable.
Within the last couple of years, Alibaba has started its westward expansion, opening its gates to western retailers and customers who flocked to the site en-masse.
Despite being a household name in Asia, Alibaba was still somewhat of an unknown entity in western countries, but that surely changed a few months ago when the company had the single largest IPO in the history of the American stock exchange which raised 25 Billion Dollars, beating the previous record held by Facebook.
And as if the US and European markets weren’t big enough for it, Alibaba is now in the phases of entering the Indian market, and we believe that we do not need to explain the kind of market potential and purchase power that 2.5 Billion people in those two nations can have, such a move, if successful will make Alibaba the largest online retailer in terms of potential market size.
Having gone through a Successful IPO, Alibaba has established a presence in western markets, and will likely continue to grow on that front, however, as you consider trading in Alibaba Binary Options you should always consider the possible pitfalls of being such an online giant: firstly – Alibaba’s reliance on sales is obvious, so you should pay close attention to those figures and predictions about them, secondly, a company such as Alibaba can hardly afford to stay standing, so global financial conditions that favor commerce are also important to its success, any reduction in spending and earning, particularly in its home markets can also have a great impact on Alibaba’s prices.
In addition, you should also note any difficulties that the Chinese government may pose, while those have lessened in recent years as the country moves towards the west economically, they are still much stricter than other countries which is a potential point of difficulty for Alibaba, any change in the Chinese political climate is also of great concern to its future success.
While trading in Alibaba Binary options is not legend, and is quite real, if you do it right, you just might “open sesame” the door to riches.