A Short Guide How To Trade On Plus500

Posted by: Freddie NorthAugust 26, 2021 Updated: August 27, 2021

Reading Time: minutes


Parts of A Short Guide How To Trade On Plus500
 

This post is also available in: Indonesia Português

Plus500 is a well-established online broker with a focus on CFDs. It offers a wide range of instruments (over 2000!) and around-the-clock support. You can invest in hundreds of markets without a commission: stock CFDs, market indices, forex pairs, commodities, and cryptocurrencies. In this guide, you will learn how to trade and make a profit on Plus500.

Millions of users trust this FCA-authorized broker. Despite just one type of account, the advantages are plentiful. Here is everything you need to get started — from demo to trading strategies.  

Plus500

https://www.plus500.com/

Covered In This Tutorial: How Does Plus500 Work?

The Plus500 trademark belongs to Plus500 Ltd., a global fintech provider. Since its establishment in Israel in 2008, the company has expanded its portfolio to over 2,500 instruments. It is listed on a stock exchange, and its position in the industry is strong. Find more information in this detailed review

So, how to trade with this broker? Our guide covers the following points:

  • How to open an account at Plus500?
  •  How does a demo account work?
  • What trading conditions are available in the Plus500 web trader?
  • How to buy and sell CFDs with Plus500?
  • Speculate on falling stock prices?
  • Use leverage?
  • Manage risk?
  • How to improve trading results?

How do you open an account at Plus500?

At Plus 500, you can open an account in a few clicks. Follow the steps below to become a member. Here is how to use its registration services. 

  1. Head to the official website and click on the button “Start Trading Now”.  

“72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.”

Plus500 - Start Trading Now

2. Select “Real Money” for real trading or “Demo Mode” (learn more about the demo below). 

Plus500 - Select Account Mode

3. Enter your email, create a strong password, and click on “Create Account”. You can stay logged in by checking the corresponding box.

Plus500 - Create Account

4. Provide the information for the identity check (for Real Money accounts): name, country, and national ID. Fill in a questionnaire. 

5. Wait for approval and make the first deposit. The broker works with Visa, MasterCard, electronic wallets, and direct bank transfers.

6. With a funded account, you can start trading. Open the ‘Trade’ section to see the list of options at your disposal, and start earning a decent rate of return!

Overview of Plus500 Demo Account 

Plus500 offers a free and unlimited demo account. If you know how to use it, you can practice trading anytime, and from any location — the system works on desktop and mobile devices. The main strengths of the simulator are simplicity, ease of use, and tutorials. 

There are just a few limitations. First, you do not have access to leverage setting options. Secondly, the setup is basic. Still, this is an excellent choice for beginners, and support is always reachable online. 

Plus500 - Demo Mode

“72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.”

Trading Conditions of Plus500’s Web Trader

Service/FeatureAvailability
The platform for live and demo tradingPlus500 Web Trader
Minimum deposit requiredYes ($100)
Available marketsStocks, indices, forex, cryptocurrencies, commodities, ETFs, options.
Minimum spread in pips0.8 (on average)
CommissionNo
Leverage limit1:300
Negative Balance ProtectionYes
Trading app for smartphone/tabletYes
ScalpingNo
Expert Advisors (Trading Robots)No
Deposit bonusYes
Guaranteed Stop LossYes

How to Trade with Plus500 (Strategy)

All beginners are advised to test any strategies in the demo mode before making a minimum deposit and delving into the real market. Whenever real money comes into play, the risk is inherent. The website has a special ‘Traders’ Guide’ section with video tutorials explaining the key trading terms and strategies. So, how to trade with Plus500?

Each strategy relies on timeframes. Traders make decisions by analyzing the price charts on the platform. They can profit from CFDs on commodities, indices, currencies, or other assets through:

  • Day Trading;
  • Swing Trading;
  • Position Trading.

Day traders buy and sell assets within the same day to capitalize on rapid market changes. Position traders hold on to their instruments for days or months. Swing traders profit from turnarounds. 

The logic is simple — buy low and sell high. For example, if you expect the share price to fall, you can open a ‘sell’ order. This will protect your investments and allow you to buy the stock later for less. 

How Do You Speculate On Falling Share Prices?

As we have just shown, it is not just the rising assets that bring profit. With Plus500, you can also speculate on falling share prices. Here is how this works in practice. 

Users can buy and go short. In the first case, you profit if the price continues to rise, but a decline is negative. Going short uses the opposite logic: a rise works against you.

As traders can capitalize on dips, they have more flexibility. On the downside, the loss from shorting is unlimited. Meanwhile, falling share prices can only reach zero. This makes risk management tools crucial. 

How Can You Use Leverage With Plus500?

Plus 500 allows trading on margin with a maximum ratio of 1:300. You can open high-volume positions without investing a fortune. The ratio depends on the instrument. The downside is a magnified risk. So, how to use leverage wisely?

Suppose the leverage CFD is 1:10. A position worth $10,000 will require $1,000. The broker finances the rest ($9,000). If you lost or made $100 trading with your capital, this would be your financial result. With leverage, you gain or lose 10 times as much!

Fortunately for traders, Plus500 protects their accounts from going negative. You will never end up in the red, even with the most unfortunate trades. Still, one bad decision with leverage can wipe out your entire balance. 

Manage Your Risk

Plus500 offers a range of free risk management tools. Here is how to trade on its platform sensibly and ensure a good rate of return. The spread is not the only thing to bear in mind.  

  1. Use guaranteed stop — it will limit your potential losses in volatile markets.
  2. Set price alerts to stay updated — the system will let you know once a certain price has been reached. 
  3. Use ‘Close at Profit’ orders for automatic execution once the price reaches a predetermined level. 
  4. Use ‘Close at Loss’ orders to make sure you do not lose more than you can afford: execution is triggered once a predetermined price is reached. 

H2 Tips

Automatic execution is the key to sustained success. The Plus500 system can close your trades at a specific price. These tools are accessible directly from the order screen. If you want to lower the risk, use automatic closing or Trailing Stop Loss. 

  1. Close Positions at Loss/Profit Automatically

The interface includes two sections with checkboxes: “Close at profit” and “Close at loss”. Enter the values using the ‘+’ and ‘-’ buttons. This method does not guarantee 100% accuracy — in case of dramatic market swings, use guaranteed loss. 

Illustrative prices

“72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.”

2. Use Trailing Stop

In an upward trend, a Trailing Stop is preferable because it follows the price. You decide how far below the current price to place it — for example, $5 lower. Afterward, this limit rises or falls replicating the movements of the asset. 

Conclusion

Plus500 offers excellent conditions for beginners. Its demo account is full-featured, and the trading platform is user-friendly. The hassle-free signup process and abundance of tutorials allow neophytes to get started quickly. 

Click to rate this post!
[Total: 2 Average: 4.5]

This post is also available in: Indonesia Português

No information, nor financial advice related to online trading is offered through contact.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

Related Posts

Freddie North

09/12/2021

Plus500 Broker Review

Plus500 Broker Review
Low Spread Forex Brokers: Top 10 List for 2021

Freddie North

07/31/2021

AvaTrade or eToro?

AvaTrade or eToro?
Top 3 best Momentum trading strategies
>