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Founded in 1920, Qantas Airways Limited (ASX; ticker: QAN) is Australia's largest domestic and international airline, with a market value of A$10.82 billion. With a long and colourful history, the airline’s initial operations consisted of pleasure flights and ‘taxi services’.
Today, the airline is known worldwide. It operates through two complementary groups: Qantas and Jetstar. While Qantas is popular for long-distance flights throughout the Americas, Asia, Europe, Australia, and New Zealand, as well as excelling in safety, superior engineering capabilities, and exceptional customer service, Jetstar caters to value-based fares across the Asia Pacific region.
Towards the end of 2025, Qantas plans to surpass this and launch the longest nonstop route to London Heathrow Airport from Sydney Airport in Australia. Interestingly, Singapore Airlines Limited currently holds the record for the longest flight route, connecting Singapore’s Changi Airport with New York’s John F. Kennedy International Airport – 9,585 miles away and taking 18 hours and 40 minutes.
Developed in the 1990s, CFDs (Contracts for Differences) for Qantas Shares work similarly to other CFDs.
A contract between two parties – a buyer and seller – form the structure of a CFD product, whereby one party enters a buy position (long) and the other party a sell position (short). In addition to CFDs on Stocks, they are also used for trading and hedging across global financial markets, such as Forex, Stock Indices, Commodities, Bonds, Digital Currencies, and Exchange-Traded Funds (ETFs).
The profit or loss of a CFD trade is determined by the difference between the opening price and the closing price, minus any commissions or interest. CFD investors do not have to worry about physical delivery, as all CFDs are cash-settled transactions.
CFDs are also leveraged contracts, allowing investors to open larger positions with a smaller initial investment amount using margin. The margin is not a fee or a deposit; it is simply the minimum amount needed to open a trading position, which will differ depending on the trading volume and the product traded.
Last week, Qantas closed at A$6.92 per share. If you wanted to invest in 1,000 shares – to own physical shares of the company and become a partial owner – this means an initial investment of A$6,920 plus any commissions associated with the transaction. However, with FP markets, using margin and leverage, you can invest in an equivalent position size (1,000 shares) but only put up 20% of the initial investment: A$1,384 (6,920 * 0.2). Unlike physical shares, with CFD trading, you are trading the underlying price movement of the stock; there is no direct ownership of either party in the CFD contract.
1. Open an FP Markets Forex and CFD Trading Account
If you do not have a trading account with FP Markets, visit the FP Markets homepage and click the ‘OPEN LIVE’ button. This will direct you to the simple five-step Account Application.
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2. Download your Trading Platform
While most stock traders use MetaTrader 5 (MT5) to trade and invest in stocks, FP Markets offers a wide selection of trading platforms, including MetaTrader 4 (MT4) and cTrader. You can access the FP Markets Client Portal using the login details sent to your registered email address. Within the Portal, traders can perform various functions: choosing and downloading their preferred trading platform, funding their trading accounts, exploring trading tools, and learning more about Social Trading and the Partners Programme
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3. Find the QAN Ticker
Once you have accessed the MT5 trading platform, finding the QAN ticker is straightforward. Press Ctrl+M to open the Market Watch tab. Here, you will find the current bid and ask quotes for all the trading instruments FP Markets offers. Type ‘QAN’ in the search function at the bottom of your Market Watch and select ‘QANTAS’ to add the stock. Following this, drag and drop QAN to the primary chart interface on the right. This will open a real-time chart for the stock, allowing you to alter its properties to suit your trading preferences.
4. Place the Buy or Sell Order
Assuming your research indicates QAN is oversold (overbought), the next step is to place a buy (sell) order. Through the MT5 trading platform, press F9 to open the order window (right image below). This will allow you to input trading parameters specific to your investment idea. For example, if research indicates an immediate trade, the order type would be ‘Market Execution’; if research shows a more optimal entry point above or below the current price, select ‘Pending Order’ in the ‘Type’ drop-down tab. Within the order window, clients can also apply data, such as volume to be traded, stop-loss and take-profit values.
Although more popular with shorter-term traders, another alternative to buying and selling Share CFDs with MT5 is through One-Click Trading (Alt+T). While this application has drawbacks, it enables traders to enter the market quickly (trading volume must be set before entering a buy or sell order).
Trading Examples of Long and Short Positions:
Year to date, the share price of Qantas Airways has risen nearly +31%, recovering from the -10% drop experienced in 2023 and placing the stock within striking distance of all-time highs at A$7.46.
According to analysts polled by Reuters, most are bullish on the stock. In fact, approximately 87% of the analysts polled are bullish, with 13% favouring a hold at current levels. The current mean price target for the stock is A$7.73; this follows a mean price target of A$7.39 in August 2024, A$7.38 in July, and A$7.35 in June. Technical chart studies also show promise for the stock, indicating a break of major resistance could trigger a run to all-time highs. Nevertheless, every trader is encouraged to conduct their due diligence before making an investment decision.
QAN has had an impressive year so far and is up +4.7% month to date; long-term technical resistance on the monthly timeframe is currently being tested at A$6.92 and appears vulnerable. While this level may still encourage some profit-taking and countertrend selling, the 2023 reaction from the level failed to prompt any meaningful lows on the monthly timeframe. This indicates that long-term selling interest in this stock is weak, suggesting a breakout higher this year and a possible run to challenge all-time highs of A$7.46.
The recent breach of A$7.00 adds weight to a possible breakout higher on the monthly chart. With daily price now navigating space north of A$7.00, the next port of call for investors is likely to be the record high mentioned above at A$7.46.
Publicly listed companies issue equity by selling shares to raise capital (a cash investment) to fund company growth, particularly for newly established companies.
Equity investors become partial owners of the company proportionate to the number of shares they purchase. They also receive voting rights and can benefit from dividend distributions and capital gains. The most common route for investing in stocks is through an investment broker.
Created in 2001, an ETF is a basket of securities you buy or sell through a brokerage firm on a stock exchange. ETFs offer investors a way to pool their money in a fund that invests in stocks, bonds or other assets. One of the benefits of investing in an ETF over an individual stock is that it provides investors with greater diversification, therby reducing risk exposure. Interestingly, ETFs are listed on stock exchanges. Therefore, shares of the ETF can be bought and sold just as you would with a regular stock.
Some ETFs are actively managed, which means the fund manager chooses what to invest in and when to buy and sell, and can attract higher management fees. Most ETFs, though, are passively managed, though, essentially tracking an underlying index or a basket of assets and typically involve lower management fees.
Investing in an ETF will not mimic the price movement of QAN. Still, investing in ETFs with exposure to this stock (and other airline industry stocks) can provide diversification benefits as briefly alluded to above.
1. Does QAN pay a dividend?
No, QAN does not currently pay dividends.
2. What are the major differences between CFDs and physical shares?
While both CFDs and physical shares allow investors to take advantage of a stock’s price movement, one of the key differences is leverage/margin. With CFDs, the leverage available is more significant than what can be obtained when dealing in physical shares, allowing investors to gain more exposure with a smaller initial investment amount. Investors in physical shares tend to be unleveraged (albeit margin is available, but far less than what can be accessed in the CFDs market).
Another key difference between the two investment options is that CFDs are derivative products that track the underlying share price of the company. This means CFD investors trade on the underlying price movement; no physical ownership is involved. In contrast, when an investor buys physical shares, the investor becomes a partial company owner.
3. Can I trade QAN on MT5?
With FP Markets, QAN can be traded on both MT5 and cTrader.
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