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How do I open a position?

To open a position, go to the “Trade” screen on the Plus500 platform, choose the instrument you wish to trade on, click Buy/Sell, and the position screen in the form of a pop-up box will be opened. In the position screen, you will be able to see the rate (price), choose the amount of shares/contracts/etc. (size of trade), view the position’s value and the required margin to open the trade, as well as set Stop Orders to help manage your risk. Please bear in mind that until you click on the Buy/Sell button on the position screen, the rates (prices) are constantly being updated according to market movements.

To learn more about margin requirements and Stop Orders, please refer to: “What are the Margin requirements?” and “What kind of Stop Orders do you offer?".

Trading Example:

You have $5000 in your account.
Balance (Deposits - Withdrawals + P&L of closed positions): $5000
P&L (Total profit and loss of all open positions including daily overnight fundings): $0
Available Balance (Balance + P&L of open positions - Initial Margins): $5000.
Equity (Balance + P&L of open positions): $5000.

You think that Alphabet shares will rise soon, and decide to open a Buy position.
Buy price: $750.
Amount of Shares (CFDs): 20
Total value: 20*$750= $15000.

Initial Margin (amount required to open the position): 20% of 15,000 → $3000.
Maintenance Margin (amount required to maintain the position): 10% of 15,000 → $1500.

Available balance after opening this trade/position: ($5000 - $3000) → $2000.

Alphabet's buy rate increases to $760 and you decide to close your position.
P&L: 20* ($760 - $750) = $200
Balance: ($5000 + $200) = $5200
Available Balance: $5200
Equity: $5200

Therefore, the position closed with $200 profit.

See video here.
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