Plus500 Trading Tutorial - How to Trade with Plus500

 

Note: CFD Service. Your capital is at risk

 

 

 

How Does Plus500 Work?

Plus500 is one of the leading CFD (contract for difference) trading providers which allows its users to trade CFDs of various popular shares, forex, indices, commodities, cryptocurrencies, and exchange-traded funds. Plus500 has an easy-to-use learning platform that is equipped with various handy and intuitive tools to make the handling of CFD trading very comfortable for all. Plus500 trading experience comes with a multitude of pros and some expected risks associated with online CFD trading. Plus500 is available to people living in over 50 countries via authorised and regulated entities.

It is important to note that Plus500 is a perfect platform for CFD trading where profit and loss depend on the price movement of the underlying asset and position of size. Knowing how the platform functions become fairly easy through this helpful Plus500 tutorials made especially to help traders with CFD trading.

 

 

How to open an account at Plus500?

 

To fully utilize the Plus500 platform you need an active account.

• You can sign up for the same by clicking on “create an account.” Once an individual has created an account on Plus500, they get access to a plethora of advanced features and tools to aid them utilise their account to the fullest.
• After getting accustomed to the Plus500 trading format and user interface, traders have a clear perception of the possibilities.
• This detailed Plus500 tutorial can help you trade CFDs with a series of clicks using your choice of financial instrument.

 

 

How to Trade With Plus500?

The Plus500 Trading Platform is easy to use. All you need to do to trade CFDs is be mindful of the price movements of an asset of your choice and buy or sell it depending on the situation. Plus500 trading interface also offers many tools like “Close at Loss” “Close at Profit” and “Guaranteed Stop Loss” to manage the risks properly. Plus500 also packs a feature where you can place future orders when a chosen instrument attains a certain price.

While trading on Plus500, you need to be careful about the fact that this is not direct trading of forex, stocks, crypto, ETFs, and commodities but a trade of their CFDs. This kind of trading is considered to be rewarding as well as risky. That is why users need to be certain of the fact that they can afford such risks.

 

 

How to open a trade?

The best thing about the Plus500 trading platform is its clear layout and professional setup. The following steps would guide you into opening a trade;

Disclaimer: Illustrative prices

 

• Firstly, sign in to your account. If you don’t have an account then create one by clicking on the option.
• Opening a trade should be your next step after logging into Plus500. To open a position, simply sign in to your account and click on the main “Trade” tab.
• Now you need to pick a financial instrument among the list of available ones that are supported by the platform.
• Once having selected an instrument, simply click on “open position” then on “trade” and selecting a financial instrument of your choice and choose either “Buy” or “Sell.”
• The position screen is where users can choose the trade size i.e. the number of shares, barrels, or ounces. Make sure to check the position’s value and the initial margin required to open the trade in this step.
• Plus500 trading platform enables you to put a stop order during this step which can stop order would automatically close your trade after the instrument reaches a certain price level.
• Plus500 also has an option to activate future order that buys/sells a certain instrument when the rate of a particular instrument assumes a pre-determined value.

 

 

How to view, open or close a trade?

 

• To View:

The Plus500 trading platform is easy to navigate freely and also highly intuitive. The platform is available for Web, Android, and iOS. To view the trade history on the Plus500 interface, simply access the “Open Positions” tab.

 

• To Edit:

There is an Edit button on the screen when a user is viewing all of the open positions. Clicking on that button would enable anyone to set an existing stop order to even update stop orders.

 

• To Close:

At times, traders need to close every single or a fractional part of open positions. With Plus500, you can do that by clicking on the Close option. This would bring up a screen where you can choose which positions to close.

 

Note: Since Plus500 strictly deals with CFDs only, each one of them has a separate expiration date. When reached, those positions are closed automatically.

 

 

How to manage trades on Plus500?

Plus500 gives every user various handy tools and options to ease the management of trades on its online CFD trading platform. To get properly acquainted with their interface and strategies, Plus500 also provides educational content on its website to instruct users how to utilize the Plus500 trading platform. There is also a demo account offered by the team using which, one can practice CFDs trading to their heart’s content without risking funds in reality. Management of trades is effortless on the technically advanced Plus500. As mentioned above, the site gives you three main trade-related functionalities to view all of your open positions.

Viewing also shows the real-time performance of trades to check whether to proceed with it or edit it strategically to balance profit and loss at the end of the trade session. Experts recommend that traders should not make adjustments to their open trades while they are running as there is a possibility of wasting your investments. Plus500’s trade management tools allow you to have a clear path even before opening positions.

 

 

Risk management with stop orders

CFDs are considered a high-risk trading methodology and rightly so because of the leverage involved. Not all traders are an expert in this type of trading, but those who prefer an intuitive platform like Plus500. Several factors affect a running CFD trade including risks. But the options to put a Stop Loss by activating Close at Profit and take profit through Close at Loss offered by Plus500 can lower chances of risks.

As the name suggests selecting a particular stop loss can protect profit made at the closure of trade. Similarly, to minimise the loss taken can be governed by the Close at Loss function automatically. With these two risk management tools, you can trade CFDs freely on the Plus500 trading platform without having to check your performance constantly or lose a good trading opportunity.  

 

How to use leverage in Plus500

It is mandatory to always research the rules, functionalities, and requirements before you start investing on a CFD trading provider’s site. Additional information on Plus500 states all that a new user needs to aware of before they sign up and begin trading high-risk CFDs on the platform. If you are new to this, then stay informed about using leverage.

Leverage is always found in a ratio format, for example, 1:5 leverage means that a $100 investment is required for a $500 trade. The concept of maximum leverage in CFDs limits your exposure by ensuring that the amount you trade with is a lot less than what you would need to invest in a particular financial instrument. Leverage is beneficial for short-term investment but higher leverage also means higher risk.

 

 

Plus500 Trading tutorial

Plus500 enables individuals interested in online CFD trading to learn about the various investment types and functionality through a set of carefully created Plus500 trading tutorials. Plus500 tutorial is available in the form of useful blogs and videos on their official website under the Trader’s Guide section. The company urges interested individuals to go through their reading materials before they sign up for a free demo account and get acquainted with CFDs trading.

Plus500 tutorials are specifically made to answer some of the most basic questions of a beginner trader who wishes to start trading with Plus500. Traders are advised to familiarise themselves with every single piece of information regarding CFD trading including famous trading strategies before they switch from a demo to a real trading account.

Note: CFD Service. Your capital is at risk

 

 

Plus500 market area

In terms of the market area and financial instruments supported by the Plus500 trading platform is one-of-a-kind. Although it offers only CFD service the variety of instruments is unmatched for traders. Plus500 supports indices, forex, commodities, cryptocurrencies, shares & stocks of well-known multinational companies, options, and exchange-traded funds. Plus500 gets compensated for its services through bid/ask spreads and operates under the regulated norms through its subsidiaries. The company is licensed by the leading regulators in Australia (ASIC), New Zealand (FMA), and is also recognised as an authorised financial services provider in South Africa.

 

 

Basics of Plus500 software

Plus500 software is one of the company’s technical achievements. It is extremely user-friendly so that traders can trade actively on the site. Starting from the initial screen, the platform offers users an opportunity to trade by opening positions. Open positions are trades that one has already started and close positions are those past trades that have been completed already.

Plus500 software is intuitive where you can trade using different types of financial instruments without observing any kind of technical hiccup. The setup and design make it easy to spot your current account balance and profit/loss data.

Once you click on a particular instrument, the software shows you an interactive graph indicating its price movements at the moment. Parts of the Plus500 that any trader utilises the most are opening position, closing a position, and its risk management tools which we discussed earlier in the Plus500 tutorial.

 

 

Basic fundamental analysis

At a glance, the platform gives an impression of being a legitimate CFD platform that strictly works within one domain which is the contract for difference (CFD) trading (not even binary options). This way the company behind this product, Plus500AU Ltd. can ensure the quality of assistance as well as their services to their clientele.

Their clients are people who are interested in trading financial instruments via an authentic platform. Such traders either prefer to do fundamental or technical analysis to determine whether trading would be advantageous to them or not. Fundamentals prefer to keep watchful on market trends and unravelling scoops to see how they influence the price.

 

 

Basic technical analysis

Plus500 is undoubtedly spreading fast as a renowned, tried, and tested CFD provider which offers more than 2800 evergreen financial instruments. The company aims to be the best among all online CFD providers with the help of its innovative yet technology and reliable platform. The platform peaks interest of even those who rely on technical analysis to make any move during trade on the market.

For this reason, the Plus500 trading platform has integrated more than 90 helpful technical indicators like;

• MACD
• Bollinger Bands
• RSI and
• Moving Average etc. to name a few

 

In addition to these technical indicators, the Plus500 trading interface also monitors statistical patterns minutely to read the market’s condition properly and help you make the right call without losing an opportunity.

 

 

Details about Plus500 instruments

 

The all-inclusive Plus500 trading platform gives a chance to delve into CFD trading by many routes that are already known to most online traders. Under the section of all instruments, Plus500 trading experience includes seven major types of financial instruments available all over the globe. Details for all of the financial instruments are as follows:

• Indices: world-famous indices like Germany 30, Hong Kong 50, and 30 other indices are available for CFD trading on Plus500.
• Forex: Plus500 allows CFD trading with more than 50 dynamic foreign currency pairs like EUR/USD and EUR/GBP.
• Commodities: you can also trade CFDs of 24 trending commodities on Plus500 including Oil and Gold.
• Crypto: crypto enthusiasts have the opportunity to CFD trade some of the leading cryptocurrencies (by market capitalisation) like Bitcoin and Ethereum.
• Shares: Plus500 trading platform caters to a plethora of popular shares associated with some leading global companies from the UK, the USA like Facebook, Tesla, etc.
• Options: despite the absence of binary options, this CFD provider allows users to trade on volatility options with flexible CFDs.
• Exchange-traded funds: top ETFs like SPDRUSA500 and VXX Volatility are available on the Plus500 trading platform where users can trade with 1:5 leverage.

 

 

 

How to read and customise charts

Among all the useful tools for technical analysis, Plus500 trading experience is not complete without a mention of their customisable charts. To follow an instrument’s price movements with accuracy, traders need to keep their eyes peeled for any changes that are noticed in the real-time chart available on Plus500.

This comprehensible chart lets any user know whenever a price fluctuation occurs over any period of time. One could even put their own time and date in the appropriate option to check and compare fluctuations in the market from that point to the present date. Once technical traders have the comparative data, they can perform analysis to decide when to “Buy” or when to “sell” a particular open position based on the trade’s profitability.

 

 

Choosing the right trading strategy

All experienced traders develop their own unique trading strategy after spending a considerable amount of time trading various rewarding financial instruments on a platform they deem reliable. Using the right kind of trading strategy could bless you with a profitable but acting on the wrong one could cost you your investment.

That is why the Plus500 trading platform for CFDs mentions three well-known trading strategies under its Trader’s Guide section for beginner-level CFD traders to try. These strategies are;

• Position trading

This type of strategy helps those traders who prefer medium-term holding planning via fundamental analysis. In position trading, a trader keeps a single trade or some large-scale trades open for the medium term (for days, weeks, or even months).

 

• Day trading

In day trading strategy, traders own more than one relatively small-sized trades for a short span. Traders who follow this plan have to open and close their trades on the same day before market bells ring while following market fluctuations closely. 

 

• Swing trading

This type of strategy is dependent on a market trend based on which a trader holds a particular trade for a longer time period. Basically in terms of swing trading, one has to pick up on market trends through technical analysis to decide price improvements.

 

 

Mobile trading with Plus500

Plus500 is famous among new and old traders interested in CFDs through its unique mobile version. Plus500 trading experience on mobile is similar to the WebTrader platform. The mobile version is compatible with Android as well as iOS through Google Play Store and App Store respectively. The first thing to notice about Plus500 mobile version is its easy navigation which makes it easy to find various options and functionalities without wasting time. It takes only a couple of minutes to create an Demo account on Plus500 mobile version. After approving your documents you can trade mobile on the real account.

 

 

Desktop trading with Plus500

Currently, Plus500 does not support the desktop (downloadable) version of the platform, Plus500 offers the Plus500 Webtrader as a trading platform. Plus500 Webtrader is accessible from any device with an internet connection without the need for downloading. It can be used on a Windows computer, on an Apple Mac, or on mobile phones with Google's Android operating system or an iPhone with iOS.

 

 

Final words

Plus500 is among the featured and legitimate online CFD trading providers that allow millions of its user-base trading with over 2800 popular financial instruments of their choice.

The trading platform is a brainchild of the company Plus500 Ltd, which also serves as the issuer and seller of the financial products that you would come across on the Plus500 trading platform. Plus500 is famous for being a regulated CFD provider.

This straightforward platform offers 2 types of accounts. One is a demo account where traders can practise CFD trading strategies quickly and effortlessly without worrying about the risks involved. Other than that, there is a retail account (upgradable).

 

Note: CFD Service. Your capital is at risk

 

FAQ

1. What can you trade with Plus500?

On the Plus500 trading platform, you can trade only CFDs of some of the world’s most popular financial instruments like ETFs, forex, options, stocks, shares, indices, crypto, and commodities.

2. Is Plus500 best for day trading?

Since day trading involves holding a small-scale trade for a very short span after picking up price fluctuations and acting on them quickly, it is a perfect match for any type of CFD trading. Hence, Plus500 is best suited for day trading but it can also reward other trading strategies as well due to its intuitive nature.

3. What is the minimum deposit requirement to open a trading account?

The minimum deposit required to get started with the Plus500 trading account is 100 euros. The CFD provider says that traders should get used to CFD trading by opening a free demo account first.

4. What kind of trading platform does Plus500 have?

Plus500 has a sophisticated trading platform using which traders can delve into CFDs without having to be afraid of the volatile nature of the market. Plus500 is a complete package as it includes educational content as well as a great demo account to instruct first-timers.

5. What is the maximum leverage available at Plus500?

As one of the top CFD providers, the Plus500 trading platform applies maximum leverage on the CFD trades executed by their users.