Contracts for Differences ("CFDs") products were developed to allow customers to enjoy all the benefits of holding a Stock, Index, ETF, Forex, Option or Commodity position without having to physically own the underlying instrument. A customer enters into a CFD at a quoted price, the difference between that price and the price of the CFD when the position is closed is settled in cash, hence the term "Contract for Difference" or CFD.
This feature allows you to set a specific rate (price) at which your position will close, in case the price moves against you, in order to minimise your loss. Once this rate is reached or passed (as sometimes the price can ‘gap’ and move past the designated level), the Stop Order will be triggered and your position will be automatically closed. This feature is free of charge.
There is no guarantee your position will close at the exact price level you have specified, because of ‘slippage’. Slippage can occur due to volatile price movements. When the market reaches or surpasses the specific price you set for the position to close, the position will close at the next available price.
This feature allows you to set a specific rate at which your position will close, in order to protect your profit. Once this rate is reached or passed, the position will automatically close. This feature is free of charge, but does not guarantee your position will close at the exact price level you specify.
During certain market conditions (in a volatile market, for example) your Stop Loss Order might not be executed at your exact preferred rate (price). This feature will force the position to close at your chosen rate (price) even if the market price surpasses it. Once your stated level is reached, the position will automatically close. This feature is not available for all instruments, and a fee is charged via a wider spread.
In order to open a new position, you must have a certain amount of funds in your trading account (your account’s equity must exceed the initial margin level requirement). To view the initial margin requirement for a specific instrument, go to the main screen of the Plus500 trading platform, select the financial instrument and click on the “Details” link next to it.
The maintenance margin level is the amount of equity a customer needs to maintain in order to keep a position open. To view the maintenance margin requirement for a specific instrument, go to the main screen of the Plus500 trading platform, select the financial instrument and click on the “Details” link next to it.
Should your equity fall below the maintenance margin amount, Plus500 may make a Margin Call or provide you with a certain time frame to add funds to the account or to close the position(s) yourself. In the event that you have not met the maintenance margin requirement by the end of the grace period or your account has gone into negative equity, the position(s) will be closed at the price available on our platform at the relevant time.
Trading at Plus500 is conducted by opening positions on financial instruments. Each instrument has a defined “Unit Amount”, which is the minimum size of trade or number of contracts/shares etc. to open a position. This information is located in the Details link for each instrument, along with other features, such as margin requirements, leverage, trading hours, etc.
Price interest point (pip) measures the smallest unit of change in a financial instrument’s price. Typically, it refers to the last decimal or digit of the instrument price.
A Trailing Stop Order is designed to protect profits by enabling a position to remain open as long as the price is moving in the right direction, but closing the trade as soon as the price changes direction by a specified number of pips.
Trailing Stop Order for Buy positions is used to protect profit as the instrument's price rises and limit losses when its price falls. Trailing Stop Orders for Sell positions is used to protect profit when the instrument's price falls and limit losses when its price rises. This feature is free of charge, but it is not guaranteed that your position will close at the exact price level you specify.
Plus500 does not claim to be an official academic institution that has received recognition from any country/government.