To open a position, go to the “Trade” screen on the Plus500 platform, choose the instrument you wish to trade on, click Buy/Sell, and the position screen in the form of a pop-up box will be opened. In the position screen, you will be able to see the rate (price), choose the amount of shares/contracts/etc. (size of trade), view the position’s value and the required margin to open the trade, as well as set Stop Orders to help manage your risk. Please bear in mind that until you click on the Buy/Sell button on the position screen, the rates (prices) are constantly being updated according to market movements.
You have $5000 in your account.
Balance (Deposits - Withdrawals + P&L of closed positions): $5000
P&L (Total profit and loss of all open positions including daily overnight fundings): $0
Available Balance (Balance + P&L of open positions - Initial Margins): $5000.
Equity (Balance + P&L of open positions): $5000.
You think that Alphabet shares will rise soon, and decide to open a Buy position.
Buy price: $750.
Amount of Shares (CFDs): 20
Total value: 20*$750= $15000.
Initial Margin (amount required to open the position): 20% of 15,000 → $3000.
Maintenance Margin (amount required to maintain the position): 10% of 15,000 → $1500.
Available balance after opening this trade/position: ($5000 - $3000) → $2000.
Alphabet's buy rate increases to $760 and you decide to close your position.
P&L: 20* ($760 - $750) = $200
Balance: ($5000 + $200) = $5200
Available Balance: $5200
Therefore, the position closed with $200 profit.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% 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.