Trading at Plus500
The Plus500 Trading Platform is straightforward and easy and allows you to trade with no commissions or hidden fees. Plus500 is compensated for its services through the bid/ask spread.
The main screen 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.
The trading hours for each instrument can be found on the Trading Platform under the details link for that instrument.
You signed up and deposited $5,000 via Skrill.
- 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 screen 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 go short is: 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 screen (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