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[ HOW TO TRADE ] Plus500 Trade Stocks, Indices, Commodities and Forex

9:33 PM , , , , , , , , , , , 0 Comments

You don't know how to trade online?No problem it's easy!

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)
You decide to cut your losses and buy Google - you press 'Close Position' in the main lobby (near your open position).

9:05pm - your market buy executes at $300. You lost $1,000 on the trade.
Balance: $4000
P&L: 0 (no open positions)
Available Balance: $4000
Equity: $4000
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Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

SHARETHIS