CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% 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 afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% 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 afford to take the high risk of losing your money.

72% of retail CFD accounts lose money.

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Trading

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

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How do I set a Trailing Stop Order?

To set a Trailing Stop Order, click on “Advanced” in the position screen on the Plus500 platform, tick the Trailing Stop box and set the required amount of pips to activate this stop.

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What are the Margin requirements?

One of the major benefits of trading CFDs is that customers can trade on margin using leverage. CFD trading means customers can trade a portfolio of shares, indices or commodities without having to tie up large amounts of capital. In order to open and maintain a position, initial and maintenance margin levels must be met. Both the initial and maintenance margin level requirements are specific to each financial instrument.

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What are the Market hours/Trading hours?

Market hours are the time frame in which a trading instrument is available for trading, i.e. it is possible to open or close a trade. You can view this information for each instrument individually by clicking on the “Details” link in the main screen of the trading platform. Market Hours are displayed in your local time.

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What are the benefits of trading CFDs?

CFDs have grown in popularity over the past few years and it is arguably becoming the preferred way to trade the financial markets. Some of the trading benefits of CFDs include no exchange charges and no stamp duty. Many of the inefficiencies of trading the underlying shares on an exchange are eliminated. The costs and delays of physical delivery of the shares, their registration and any holding or safe custody charges made by a broker are all avoided. The other major benefit of trading CFDs is that customers can trade using leverage on margin. CFDs trading means customers can trade a portfolio of shares, indices or commodities without having to tie up large amounts of capital. Moreover, any financial entitlements, such as dividends, are adjusted for in cash, directly to your account. However, any voting rights available to the holder of an equity share are not available to the holder of an equivalent CFD.

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What can cause the closure of my position?

Positions can be closed by any of the following: margin call, execution of a predefined Stop Order, expiry* or manual closure. You can find the specific reason in the “Closed Positions” tab, under “Close Reason”.

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What does “Leverage” mean?

Leverage is a concept that enables you to multiply your exposure to a financial instrument, without committing the whole amount of capital necessary to own the physical instrument. When trading using Leverage you only need to put down a fraction of the total value of your position. Profits and losses are based on the total size of the position, so the end result of a trade can be much larger than the initial outlay, in terms of profits or losses. CFDs are a form of leverage trading. The amount needed to open and maintain a leveraged trade is called “the margin”. Trading using leverage is sometimes called “margin trading”. In general, when using leverage a small change in the price of the CFD is amplified into a bigger change, resulting in increased returns/losses.

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What is an Order?

An Order is a request to open a position at a specific rate (price). New positions cannot be opened outside the instrument's trading hours, however, you can open future Orders. To open an Order, click on “Advanced” in the position screen (when using the Windows and Web Trader) → check “Only Buy (or Sell) when rate is” → set the required rate (price) → Click Buy/Sell. The Order will automatically open a position once the requested rate is reached or surpassed - the Order is not guaranteed as the rate (price) can change by more than 1 pip at a time. Real orders will expire in 90 days if a position has not been opened (30 days for demo orders).

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What is a Professional Account?

A Plus500 Professional Account is available to traders who meet the regulatory threshold to opt up from Retail Client to Elective Professional Client. Professional accounts are not subject to ESMA’s new leverage restrictions. Learn More.

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What is a CFD?

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.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% 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 afford to take the high risk of losing your money.