Trading at Plus500 is straightforward and easy with no commissions or hidden fees. Plus500 is compensated for its services through the bid/ask spread. Our trading platform lets you buy any financial instrument listed on our website and sell it as quickly as a couple of seconds later.
The main lobby of the software contains the buy/sell prices of all the instruments available. When entering an order to buy an instrument, the advanced trading platform allows you to add a stop loss, profit limit or trailing stop to protect your position - and profits.
Trading example:
You signed up and deposited $5,000 via MoneyBookers.
* Balance: $5000. (Deposits - Withdraws + P&L of closed positions)
* P&L = $0. (Total profit and loss of all open positions including daily premiums)
* Available Balance: $5000. (Balance + P&L of open positions - Initial Margins)
* Equity: $5000. (Balance + P&L of open positions).
You think that Google shares will fall soon, and decide to go ‘Short’ on Google.
5:07pm - you click ‘Short’ beside the ‘Google’ stock in the main lobby, the sell price is $290.
Your criteria are:
* Number of Shares (CFDs): 100
* Close at profit rate: $280 (profit will be 100*$10=$1000)
* Close at loss rate: $310 (loss will be 100*$20=$2000)
* The total amount you sold short are: 100*$290 = $29,000.
* The Initial Margin that is needed for the Google shares is 10%: $2900.
* The Maintenance Margin that is needed to maintain Google's position is 5%: $1450.
Your position is now:
* Balance: $5000
* P&L = 0 (usually the spread of Google is 50 cents so you would have a P&L of -$50)
* Available Balance after you sold Google is: $2,100. ($5000 - 10%*$29,000 = $2,100)
* 'Equity': $5,000 ($5000 + $0)
9:05pm - Google climbs to $300.
* Balance: $5000
* P&L: -$1000 (100*$290 - 100*$300)
* Available Balance: $1100 ($5000 - 10%*$29,000 -$1000= $1100)
* Equity: $4000 ($5000 - $1000)
9:05pm - your market buy executes at $300. You lost $1,000 on the trade.
