Welcome to the tutorial that we have prepared on the Plus500 trading platform . In this guide, geared especially for beginners , we will try to explain in a simple, graphical and step-by-step way how the platform is handled , the available tools and the basic concepts you must know to open, manage and close positions with this online broker.
What is Plus500 and why choose it for online trading?
- Plus500 is one of the largest online brokers and probably the one that has made the largest financial investment to offer its clients the most intuitive and user-friendly platform possible . It is an online trading platform available in more than 30 languages and designed to be used on a wide variety of devices (desktop computers, laptops, smartphones or tablets with iOS operating system (iPhone, iPad, …), Android system or Windows Phone.
- On this platform you can trade CFDs (contracts for difference) in more than 2,200 different financial instruments such as currency pairs from the Forex market, cryptocurrencies (such as Bitcoin, Ethereum, Litecoin, Ripple, NEO, ..), stocks (from companies from Spain, USA, UK, Germany, France, Italy, …), the main world stock indices , oil , gold , raw materials , ETFs, …
- The CFDs are a type of financial derivative agile that lets you benefits without having to physically buy or sell the instruments you want to operate. You can trade small amounts of money , increase your ability to make a profit thanks to leverage, and trade in both bullish and bearish price movements .
- Plus500 is a regulated broker that is subject to compliance with European investor protection regulations : Plus500 UK Ltd is licensed and regulated by the UK’s FCA (Financial Conduct Authority) (FRN 509909). Plus500 CY Ltd is licensed and regulated by the CySEC (Cyprus Securities and Exchange Commission) with license number 250/14. Plus500AU Pty Ltd is regulated by the ASIC (Australian Securities and Investments Commission) under license ACN 153 301 681, AFSL # 417727.
Plus500 is the main official sponsor of Club Atlético de Madrid.
What options do we have depending on the device we want to use?
For any desktop or laptop computer with a Microsoft Windows, MAC or Linux operating system, we can access the Plus500 trading platform (WebTrader) for free . It is a 100% web-based platform that does not need to be downloaded or installed on your computer. You only need to access it through your web browser (Chrome, Internet Explorer, Firefox, Safari, Opera, …) and identify yourself with your email address and password that we will leave configured when opening an account with this broker.
Access the Plus500 WebTrader
(*) Risk warning: 80.5% of retail CFD accounts lose money.
Mobile or Tablet with Android :
For any smartphone, tablet or device with Android operating system we can download the Plus500 App for free through the following Google Play link:
Download Plus500 for Android
(*) Risk warning: 80.5% of retail CFD accounts lose money.
Mobile or Tablet with iOS :
In the case of Apple brand devices with iOS operating system such as iPhone, iPad or Apple Watch we can download the Plus500 App for free through the following link in the App Store:
Download Plus500 for iOS
(*) Risk warning: 80.5% of retail CFD accounts lose money.
In this step-by-step tutorial we are going to use the Plus500 web platform for computers as an example . In your case, if you are going to use a mobile or tablet you will see that it is practically identical and you will be able to follow this tutorial perfectly. You must download and install the App on your device. It is a very simple process and in a few minutes you will have it ready.
Open an account in Plus500 “STEP 1”
After accessing the Plus500 WebTrader, the first step will be to select if we want to open a real account and therefore you will have to deposit funds (the minimum deposit in Plus500 is only € 100) or if we want to open a demo account (“Mode of Demonstration ”) in which you will have € 40,000 of fictitious balance to practice in conditions identical to a real account but without putting your money at risk from the first moment.
In either case, the first thing to create your account is to indicate your e-mail address and a password that will allow you to log in to the online trading platform. These will be your access data on the following occasions that you use the platform. You can also comfortably register with your Google or Facebook account.
From this moment you already have access to the platform whose features and tools we will see below. The difference is that if you have chosen to start with a demo account, you will be able to start making operations with the virtual balance of € 40,000 that you already have added to your account and therefore go to step 2 of this tutorial.
Instead if you have chosen to start with a real account you must start by verifying your account and depositing funds to be able to operate. Let’s see the steps to leave your account verified in this case:
If we click on any Buy or Sell button or if we go through the “Menu” >> “Funds” section >> “Deposit”, the registration form will open on the screen . This form is divided into several steps. The data requested from Plus500 here is basically the same as any duly regulated online broker requests. This type of personal data, about our experience and financial situation, is imposed by the regulatory bodies that supervise Plus500 to comply with user safety regulations and anti-money laundering policies .
We must cover the form data , read the terms and conditions, … and, after these steps, our account will be verified and ready to make the first deposit that allows us to trade. The initial minimum deposit in Plus500 is € 100. To know more details about the process of depositing funds in Plus500 you can see this article: How to make a deposit in Plus500 .
We now turn to see the elements that make up the Plus500 trading platform:
Elements of the Plus500 platform “STEP 2”
Once the Plus500 account is opened, our main working tool for trading is its platform. This is what it looks like :
Below we will see the main elements that make up the work area of the Plus500 trading platform and what they are for:
- Top bar
As you can deduce by its own name, it is located at the top of the platform screen:
Following the Plus500 logo, on the left side we have the instrument finder . It is a very useful tool since, just by entering the name of the financial instrument that we want to locate and clicking on it, its tab will appear on the right side of the screen and its corresponding price chart at the bottom. We can see an example in the following image after searching for and selecting the EUR / USD currency pair:
If we continue moving to the right through the upper bar, we have a series of data that will allow us to carry out the monetary management of the account :
- Available : It is the amount of money that can be used to open new operations. This is the account balance minus the margin that has already been used in open operations. It is also necessary to add to this amount (add or subtract) the floating gains or losses (that is, they vary as the operations that are open at that time are developed).
- Capital : It is the balance of the account, taking into account open operations and therefore fluctuating open positions. As the operations that are open are developed, this figure changes.
- Maintenance margin : Indicates the maintenance margin required for open positions. You can keep a position open as long as the available capital in your account is higher than the “Maintenance Margin” (which varies for each instrument). Otherwise, if the losses decrease the “Capital” figure and it is below the “Margin”, we will receive a notice to enter more margin (Margin Call) or the positions that are necessary may be automatically closed by the platform until that the available capital is again above the required maintenance margin. When a trade is closed, the margin is released and becomes “Available”.
- Gains / Losses : It is the balance of open operations, the net figure of profit or loss that we have as a result of one or more operations that are still in force. It fluctuates according to how each operation is developed. When an operation is closed, the profit or loss is no longer reflected in this concept, being definitive and non-fluctuating and being applied to our Capital.
To conclude with the top bar, on the right side we have a button with the image of a globe in which notifications are shown. It is the warning center , you just have to click on it to open a drop-down with Plus500 notices.
- Menu bar
Located on the left margin of the screen, from the Menu Bar all the main functions of the Plus500 trading platform are controlled. It is made up of the following options:
Above all, the “Menu” button is shown, in which the following options box will be opened
We can manage all the functions that appear in this table: From depositing or withdrawing funds, validating and configuring the account, accessing help, as well as extra services (economic calendar and alerts). We can also change from demo account to real account mode and finally log out of the platform.
This option causes the list of financial instruments available to operate to be displayed in the upper right part of the screen. These instruments are grouped into categories.
From top to bottom we find:
” Most popular ” which are the most traded instruments in Plus500 by its users.
“Up and down ” where we see the instruments that currently register higher price rises or falls.
” My favorites ” which will initially be empty but which may be useful to have quick access to the instruments you use the most (to add an instrument to this list, just click on the star icon on each instrument).
” Raw Materials ” that include oil, gold, silver, coffee, corn, …
“ Indices ” which are the main stock market indices of countries such as Spain (Spain 35 is the IBEX 35), the United States (USA 500 is the S&P 500, US-TECH 100 is the NASDAQ 100, USA 30 is the Dow Jones 30,… ). The evolution of stock market indices is marked by the price of the companies that make up the index. For example, the IBEX 35 is made up of the 35 main companies and the behavior of the index reflects the joint behavior of the companies that comprise it.
” Cryptocurrencies ” where we have access to trade with some of the main cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Ripple, NEO, Monero, …
Forex market “ Currencies ” organized in Popular pairs (the most traded such as EUR / USD, EUR / GBP, GBP / JPY) and More pairs (with lower trading volume). More Info: Best Currency Pairs to Invest in Forex .
” Options ” are a type of option CFDs offered by Plus500. More info: Plus500 Options .
” Shares ” is where we will find the shares of the main companies grouped by countries such as Spain, the United States, the United Kingdom, Germany, France, Italy, Australia, …
“ ETFs ” are investment funds that are publicly traded and can replicate the evolution of a stock index, a set of shares, raw materials,…
Choosing which instrument to trade is already a matter for each trader . If you are starting we recommend that you take a look at Forex currencies (More Info: What are the advantages of trading in Forex? ) Or stocks or indices you know .
In this tab we will see in real time the evolution of the positions that we have open. From here we can track, modify or close them when we see fit. We will see it in detail a little later.
Here we will see the orders pending execution, if we have any. As we will see a little later, instead of opening a position immediately, you can also do it when the price reaches a certain value. At this point you could manage those operations that are waiting to be executed.
In addition to the orders pending execution we can also see at this point those that have been executed (in the last 72 hours).
By clicking on this menu option, the platform will show us the positions that have been closed, as a history of operations.
This section is useful to obtain statistics and conclusions about our way of trading. It is possible to obtain a greater detail of each of the operations if we click on the information button located on the far right of each closed order, as shown in the following image:
Real Money / Funds
Depending on whether we are operating with the demo account or the real account, this button will be different.
When we are in the real account it is intended to manage the funds and other aspects about the configuration, security and privacy of our account. Equivalent to the “Account” submenu of the “Menu” button seen previously.
When we are in demo mode, this option only serves to switch to the real account.
- Investment instruments
If we go to the “Trade” menu option, we have already seen that in the upper right part of the screen it shows us the categories of financial instruments available for trading. Just to the right of these categories the list of instruments of the selected category loads us. Let’s see what each element is:
Instrument : Name of the instrument.
Variation : Percentage of daily price variation with respect to the previous day.
Sell : Sale price + “Sell” button >> Soon we see what it means.
Buy : Purchase price + “Buy” button >> Soon we see what it means.
High / Low : It is the maximum and minimum price that the instrument has reached today.
Star Icon : To add the instrument to the Favorites category that we have seen before.
Bell Icon : Allows you to create an alert to receive an email or SMS when the instrument reaches a certain value.
Information Icon: It is the link to access all the information available for the selected instrument. >> A little later we will see it in depth to open positions.
About the sale and purchase prices : when trading CFDs, as is the case with the Plus500 broker platform, we will be able to obtain benefits both if the price of the instrument rises or falls . If you think the price is going to rise, you can open a buy position (Buy button) to later close it with a sale and collect profits (this is called going long ). If you think the price is going to go down, you can open a sell position (Short Sell button) and later close it with a purchase (this is called going short ). Therefore you can take advantage of both bullish or bearish movements while if you physically bought the instrument (for example, shares in a company) you could only get benefits if you sell them after increasing its value.
The difference between the purchase price and the sale price is called the spread and it is a commission that the broker applies to carry out the operation. The spread varies according to the financial instrument you choose .
- Stock charts
In the lower central part of the Plus500 platform we have available the price chart of the investment instrument that we have selected . These charts, together with a series of tools that we will see below, will be useful to analyze what the price evolution has been , try to predict what the future behavior will be and, therefore, make our trading decisions . This is what is known as technical analysis . More info: Technical Analysis or Fundamental Analysis?
The elements that we have available to manage the graph from left to right are the following:
Time Frame or Time Frame : It allows us to adjust the graphic representation to a shorter or longer time frame . We can select 1 minute, 15 minutes, 30 minutes, 1 hour, 2 hours, 4 hours, 1 day or 1 week . The graphs of time frames such as 1 day or 1 week offer us a broad time perspective that will allow us to analyze price behavior and trends from the medium and long term, but they do not help us to correctly analyze what is happening in this period. moment to be able to operate in the short term , something that the lower time frames can help us withfor example 1 minute, 15 minutes, 30 minutes or 1 hour. Each trader must choose to work with one or more time frames determined according to their profile and their own trading strategy. More Info: What is the right Time Frame when Trading?
Change the type of graph : We can select among several types that Plus500 offers us on its trading platform. Those that most traders usually use are Line or Sail (Japanese Candles).
The line graph shows precisely a line that is formed by joining the closing price of the instrument during the time period represented according to the time frame you have selected (for example if the time frame is 1 day, the line will link the different prices daily closing prices that have been produced in the period of time that the graph allows you to see, instead if you select 1 hour, it will be joining hourly closing prices). You can click and drag inside the graph from left to right to move backwards or forwards in the time period represented and also use the zoom (+ – buttons at the bottom) to get a more accurate or wider view according to you need it.
The graph of Japanese candles and their shapes would give to make various articles. Trying to synthesize as much as possible, we can point out that this type of graph provides much more information than the line graph . We have 2 types of candles: bullish (green) and bearish (red) :
This type of graph is also generated based on the time frame you have selected . For example for a 1-day frame each candle will represent the evolution of the price in 1 day, in a 5-minute frame each candle represents 5 minutes, … Suppose the time frame is 1 day :
If the candle is bullish (green) the opening price represents the price at the beginning of that day, throughout the day it may have oscillated up and down and finally the closing price represents the exact price at the end of the day. . For the candle to be bullish, the opening price must have been lower than the closing price . This is what the body of the candle tells us and therefore the higher the candle is, the greater the upward force (buy operations) will have been.
In the opposite case is the candle is bearish (red) where the opening price also represents the price at the beginning of that day, throughout the day it may have oscillated up and down and finally the closing price represents the exact price at the end of the day. For the candle to be bearish, the opening price must have been higher than the closing price . The higher the candle is, the greater the downward force will have been (sales operations).
A greater than the body of the candle we also have what is known as the shadow or wick that can be higher and / or lower depending on the price has reached a certain point below the opening price and above the closing price in a candle Bullish or above the opening price or below the closing price on a bearish candle. The size of the shadows and the bodies of the Japanese candles and also the analysis of several previous candles can give us much more extensive information on the behavior of the price, what is the trend , its strength and what may be its evolution. in the future.
Indicators : the following tool allows you to incorporate several of the best-known indicators (ADX, Bollinger Bands, Stochastic, MACD, Moving Average, Parabolic SAR, …) into the graph. The indicators are mainly based on mathematical and statistical calculations. You can find various ideas for using these indicators in our section on ” Investment strategies ”
Quote Alerts : We have talked about them before. It allows creating an alert to receive an email or SMS when the instrument reaches a certain value.
Chart Settings : Allows you to enable or disable 3 customization options. We recommend that you leave all 3 activated.
Visualizations : Allows you to save visualizations as templates and reuse those same settings when you need it.
Show the pointer in the form of a cross : Activating this option and moving the mouse pointer on the graph will give you more precise information on the date, time and price at the point you indicate on the graph.
Drawing Tools : Allows you to add various drawing options on the graph that can be useful for drawing channels, support lines or resistances, … thus helping you in the task of technical analysis. From this option you can also remove the tools that you have previously added.
Expand to full screen : Well, it allows just that, expanding the graphic to full screen to see it better or once enlarged allows you to restore it to the usual size in and move to this lower part of the screen.
Zoom : The “+” and “-” buttons inside the graph at the bottom allow you to zoom in and out of the graph.
It only remains to say that by selecting any financial instrument on the operating screen of the “Trading”, “Open Positions” and “Orders” commands, the corresponding price chart will appear at the bottom to be able to work with said asset.
How to open a position in Plus500? “STEP 3”
Once you have selected the instrument in which you want to trade, you can open a buy (if you think the price will rise) or a sell position (if you think the price will decrease) . You can open the position with the Buy or Sell buttons directly from the financial instrument panel in the upper central part of the Plus500 platform, but we recommend that you first click on the information icon on the right side to see all the data. of the instrument.
We have selected the currency pair GBP / USD (British Pound / United States Dollar) and the following appears:
At the top we have the name of the investment instrument . Also the variation that the instrument is having in the current day compared to the previous one (in this example we see that the price of the GBP / USD pair is having a rise of 0.02%). Beneath the name is a link to Yahoo! Finance for more information about the instrument and to the right we have the star icons (to add to favorite instruments) and the bell (to create a quote alert).
Just below that block the Sell and Buy buttons that will allow us to open the position together with the current purchase and sale prices (the difference between the two, as we have mentioned before, is called the spread and is a commission applied by the broker) .
The current market sentiment regarding this instrument that the Plus500 community of traders currently has is shown graphically below .
Below we have a series of statistics on the evolution of the price .
Let us now see the section called “Information” where we have relevant information about the selected investment instrument :
Unit Quantity : Represents the minimum amount you can buy or sell of this instrument and, at the same time, if you want to increase the amount of this unit quantity in blocks. For example in this case of the currency pair GBP / USD the first currency works as the merchandise to buy or sell and the second one works as money (if you open a buy position, you would be buying British Pounds against the United States Dollar. No matter what it is the currency of the trading account, which in our case is in euros, since the Plus500 platform is in charge of automatically transforming the amounts). The minimum amount of pounds sterling that we can buy would be 1,000 and if we want to buy more it would go in blocks of 1,000 in 1,000, for example 2,000, 3,000, 4,000, … If we see, for example, other instruments: Brent Oil (Unit quantity 5 barrels), Gold (Unit quantity 0.5 ounces), Spain Index 35 (Unit quantity 2 contracts), Currency pair EUR / USD (Unit quantity € 1,000),
Leverage : Leverage is a fundamental tool when trading in Forex and CFDs since it allows you to trade with a certain amount of money in an operation having a much lower real capital in our account . It is expressed with two numerical quantities surpassed by two points. For example, a 1:30 leverage means that we can operate with 30 times the amount of capital that we have to contribute as collateral . For this example of the GBP / USD pair we can buy or sell 1,000 pounds sterling (and therefore obtain the benefits of operating with that amount) only by providing 33.3 pounds as collateral. Currently the maximum leverage of the Plus500 broker is 1:30. Please note that theAvailable leverage varies with each financial instrument . Also keep in mind that this tool represents a great opportunity to increase your profits by operating with little capital, but it also involves risks : you can get the benefits of operating with a much higher amount than you contribute, but also the losses are the total amount of the operation and not what you contribute. Later we will see how we can keep at risk the risk we assume per operation.
Dynamic Differential : Represents the spread , that is, the difference between the purchase price and the sale price, which, as we have seen before, is the commission applied by the broker to carry out the operation. Remember that the spread varies according to the financial instrument you choose.
Buy / Sell Night Financing and Financing Time : If you keep your positions open overnight , the broker will charge you a commission called night premium . This commission is indicated as a percentage and varies if the position you open is to buy (Financing Night Purchase) or to sell (Financing Night Sale) . The schedule in which the premium for each day is collected is the one indicated in “ Night Financing Time “. In this example we see that for the GBP / USD pair we would be charged at 23:00 each day 0.0093% if we open a buy position or 0.0006% if we open a sell position. There are some instruments whereIt may be the case that the value of the Premium Sale is a positive percentage, so instead of charging you, Plus500 would pay you that percentage for your positions opened overnight.
Initial Margin : to open a position, the capital that we have to have available must be greater than this initial margin . It is related to the level of leverage that we have just discussed. For example, to open a buy or sell position of 1,000 pounds in the GBP / USD pair we will need an available capital of at least 3.33%, that is, 33.3 pounds.
Maintenance Margin : With Plus500 you can keep a position open as long as the available capital in your account is higher than the “Maintenance Margin” . This is abroker protection mechanism to try to prevent your losses from exceeding the capital of your account . Keep in mind that if you simultaneously hold several positions open, each one will have its own maintenance margin and therefore the available capital must be enough to cover the maintenance margins of all these open positions. Plus500 controls the level of the maintenance margins of your account in real rate . If your available capital fallsBelow the required maintenance margin , Plus500 will execute what it calls “ Demand for supplementary coverage ”, which is known as the “Margin Call” (it alerts you by e-mail and you can also activate it by SMS) so that you can increase your capital or close any of the open positions . If the grace period is exceeded, the level remains below the required one, all the necessary open positions will be closed automatically until the available capital is again above the required maintenance margin.
Expiration Date : If the selected instrument has an expiration date, the open positions on that instrument will be automatically closed when the indicated date and time are reached, unless the rollover is automatically renewed. Forex market currency pairs have no expiration date at Plus500.
Next Trading Session : Indicates the hours in which operations can be carried out on the selected investment instrument . Outside these hours you will see that the purchase and sale prices do not fluctuate in the list of instruments and that the text “ The market is closed “appears in the Max / Min column. If you click on the buy or sell buttons you will receive a message indicating that the negotiation is closed and that you are only allowed to create purchase or sale orders that are pending execution when the price reaches a certain value that you indicate and the market is open for that instrument.
Once we know all the details about the instrument, we are going to execute an operation :
Pressing the ” Buy ” button we will adopt what is known as a long position (go long), closing it later by selling the asset and making a profit if it has increased in price. The benefit is represented by the price difference between the purchase and the subsequent sale.
On the contrary, if we press ” Sell “, we will adopt what is known as a short position (go short), repurchasing the asset when closing the operation and the profit will come given if the price has fallen.
In both cases our intention is to open a position, the only thing that varies is the meaning of it. After having pressed the button that we believe appropriate to determine the direction of the operation, the following options will appear:
Current Price : Indicates the current market price of the investment instrument.
Quantity : It allows us to select the quantity with which we want to operate . We can write the amount or go up and down with the buttons of “+” and “-“. The minimum selectable quantity corresponds to what we saw before “ Unit Quantity ” in the instrument details and we can increase it in blocks of the same quantity.
Required Margin : As we increase or decrease the amount to be traded, the required margin also increases or decreases proportionally. This margin corresponds to the percentage expressed in “ Initial Margin ” of the details and is referenced to the leverage that Plus500 offers us for this instrument. In our case, we see that to operate with 1,000 pounds we need to contribute 33.33 pounds as guarantees, which at the moment, based on the current exchange rate, corresponds to € 37.32 .
Close when it goes up to : known as “Take Profit” or profit cap , it allows us to specify a price so that the position closes automatically when it reaches a certain value . It serves to protect our benefits . It is based on establishing a target price that we believe that the instrument can reach and therefore that the position is closed upon reaching it, avoiding subsequent fluctuations that reduce our profit. By activating this option, you can modify the price for this profit cap and see just below how much and percentage of benefits it would mean.
Close with losses : known as “Stop Loss” or stop loss is a fundamental risk control toolthat allows us to specify a price so that the position is automatically closed when reaching a certain value. It serves to define a maximum level of loss that we are willing to bear for this operation and therefore that the position is closed if the price is against us and this level is reached, thus cutting losses. By activating this option, you can modify the price for this loss cap and see just how much and what percentage it would be. The advantage of the Plus500 platform is that it looks very clear How much is the amount of losses of the Stop Loss that you have activated (and of profits in the case of Take Profit), in other brokers with other platforms it is much more difficult.
If you activate the box “Close with losses” just below you will also see the following:
Guaranteed Stop : It works if you have activated the “Close with losses” and it serves exactly the same thing but in this case the value that you define for the closing of the position will be guaranteed by Plus500 : The Close with Losses may not work correctly in the event of sudden movements of the market (as gaps ) and end up generating a greater loss. This Guaranteed Stop of Plus500 will allow us to correct this situation and guarantee that our losses cannot exceed the established limit and that the position will be closed exactly with the indicated price in exchange for paying a small commission. that it will indicate when activating this option.
Below we have the ” Buy ” button (or Sell if you have selected to open a sale position) to open the position, the ” Cancel ” button and an ” Advanced ” link that allows us to activate two major options :
Dynamic Stop : It is another tool to protect our benefits that allows the stop loss or loss stop to be updated dynamically as the price advances in our favor to always be at a certain distance (measured in pips). Imagine that you open a position and that after a while the price has advanced in your favor and you are in benefits. You may be interested in being able to secure a profit instead of maintaining the stop loss that you had initially defined as losses. For this you can edit the position and move the stop loss to a certain price higher than the opening price and in case the price turns against you, at least the position would close at that new stop loss value with benefits. The alternative offered by this dynamic stop is that this Stop Loss would automatically move in the direction of your forecast as the price moves in your favor and, if the price turns around, the position will close at a certain distance from the maximum level of benefits achieved without constant vigilance and intervention on your part .
Buy / Sell only if the price reaches : This is what we discussed above about pending orders . It is about defining a value and the position would be pending and would only be opened if that indicated value is reached . This is useful if you think that the price is going to go in a certain direction but, instead of opening the position now, you prefer to make sure that you do it when a certain value has been reached that confirms that the direction you have predicted is the correct one.
When you have defined all the position parameters that you deem appropriate, you only have to click on the buy or sell button (depending on your case) and the position will be open on the Plus500 trading platform.
How to control the open positions in Plus500? “STEP 4”
Once we have a position open, to follow its evolution, the easiest thing is to go to the “Open Positions” tab in the Menu Bar of the Plus500 platform and we will see something like the following:
The data that appears to us is the following:
- The financial instrument on which we have opened the position and the meaning of it (buy / sell).
- The current gains or losses of the position.
- The current value of the operation (V. current): This is the number of contracts or shares (Amount or size of the position) multiplied by the current listing price.
- Variation: Shows the percentage of variation from the opening of the operation to the current price.
- Edit / Close : From here you access the box to edit or close an open position. We will see it in detail in this tutorial a little later.
- Top Limit: Both options that appear are to adjust both the Stop Loss and Take Profit orders .
- Adjustments: We are shown the balance that is added or subtracted to the account under ” Adjustments “. Adjustments generally occur in financial instruments that have an expiration date on the Plus500 platform and in which the contract is automatically renewed while maintaining open positions .
- Night financing : Here we can see the value of the Swaps or night bonuses applied. As we have seen before, it is the daily interest rate of the funds that the Plus500 broker lends us to open a position in the market. We as traders actually what we contribute is a percentage of the total position as a margin or guarantee. Depending on the leverage, the margin will be higher or lower.
- Opening time: Indicates the date and time when the operation was opened .
Finally, we have the information button , pressing on it the box will appear with all the information and the options of “Edit” and “Close” that we will see in the next steps of this guide on the Plus500 platform.
All data is updated in real time according to the accumulated profit or loss situation in the positions you have open.
It only remains for us to point out that open positions can also be controlled , with less detail of data, from the ” Trading ” screen . By placing ourselves in the category of some asset in which we have open positions, we will have information about the status of the positions as we can see in this example image:
How to edit an open position? “STEP 5”
The moment we have an open position, it is capable of being managed. Market conditions may change and we may need to adjust some order parameters such as our Take Profit, Stop Loss or Dynamic Top values . For this we must go to the menu option “Open Positions” and click on the link “Edit” of the position whose values we want to modify:
We will open a window like the following in which we will change the parameters that we consider appropriate (we cannot make a change in the amount but we can establish or change the stop loss, take profit or dynamic stop values) and finally we will click on the button “Update ” :
How and when to close an open position in Plus500? “STEP 6”
As a summary , we have seen that in Plus500 there are several ways for a position to be closed automatically due to one of these cases:
– Take Profit reached : it is the best possible scenario and will mean that your profit target has been reached and therefore the position has been closed and your balance will have increased.
– Stop Loss reached : this is no longer a good thing and means that the loss limit you have defined for that position has jumped. Do not be discouraged, some of your operations will cause you losses, especially at first when you have no experience, but also when you have been operating for some time this will happen. It is impossible to succeed 100% of the time. You have to accept it, relativize it and try to learn from your mistakes.
– Insufficient maintenance margin : If your available capital falls below the required maintenance margin, a grace period will begin for you to expand your capital or close any of the open positions and after that time, all open positions will be automatically closed. necessary until the available capital is again above the required maintenance margin. The best way to avoid this is to put only a small part of your capital at risk in each operation and open a reasonable number of positions simultaneously that leave a certain margin of available capital.
– Expiration date reached : If the instrument you are investing in has a defined expiration date, the open positions on reaching that date and time (you can see it in the details of each instrument) will be closed automatically. It is not usual since most of the instruments currently offered by this online broker do not have an expiration date and those that do have are usually automatically renewed (rollover).
In addition to these previous cases, there is also the possibility of wanting to close the position manually because we believe that the situation has changed with respect to our initial forecast and we prefer to collect current benefits or cut losses :
– Close Position Manually : If you want to close a position that you currently have open, you can do so by going from the menu to the “Open Positions” option and clicking on the “Close” button . On the right side, a box will open with the details of the position and you must confirm by clicking on the “Close position” button :
Once you have clicked on the button, the position will be closed and it will disappear from the list of open positions and the values of the available capital, maintenance margin, … will be updated in our account balance.
We can consult all the closed operations and their details in the menu option “Closed Positions” of the Plus500 platform as we have seen before.
This is our tutorial on how to use Plus500 . Now it’s up to you to test the trading platform :
Access the Plus500 WebTrader
(*) Risk warning: 80.5% of retail CFD accounts lose money.
Download Plus500 for Android
(*) Risk warning: 80.5% of retail CFD accounts lose money.
Download Plus500 for iOS
(*) Risk warning: 80.5% of retail CFD accounts lose money.
We hope this guide to trading with Plus500 will help you . You can send us your comments, questions or opinions and we thank you for sharing it on social networks with your Likes, Tweets or +1 Google Plus.
Risk Warning: CFDs are complex instruments and have a high risk of losing money quickly due to leverage. 80.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can take the high risk of losing your money.