About Trading at Plus500

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)



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