Are there any hidden fees? There are no hidden fees at Plus500. Plus500 is mainly compensated for its services through the spread. For more information, please read: “Do you charge... more" />

Plus500 Trading Questions

Are there any hidden fees?

There are no hidden fees at Plus500. Plus500 is mainly compensated for its services through the spread. For more information, please read: “Do you charge any fees?”

Are there any restrictions with regards to trading methods?

Any trading method which is prohibited under the terms of the User Agreement such as scalping, automated data entry system and hedging, or which falls under the definition of market abuse such as insider trading, as well as any prohibited activity such as an abuse of our bonus system, is not allowed on our trading platform. In such circumstances, we reserve the right to void all of your trades and/ or close your account. For more information, please read our User Agreement available on our website.

Can I be in debt to you? / Can my account go into a negative balance?

Customers cannot lose more than the funds they have on their account. The “Margin Call” feature exists in order to prevent your account having a negative balance. However, a temporary situation may occur when the balance becomes negative pending the deposit of funds in order to maintain your open position(s), or just prior to your closure of the positions. For more information please read “What is a Margin Call?”

Can I downgrade my account from “Gold” back to “Standard”?

Yes. If you wish to change your account status back to “Standard”, please contact us with your request and your account settings will be adjusted accordingly. To contact us, click on the “Email Us” link.

Do you charge any fees?

Plus500 is mainly compensated for its services through the “market spread”. For example, when trading EUR/USD, if the buy rate is 1.3128 then the sell rate would be 1.3126 respectively (which means a market spread of 2 pips, in this example). Unlike other service providers who also charge commissions on each trade, Plus500 does not charge dealing commissions.

However, the following additional fees may be applied:

Premium – An overnight fee, called “Premium” is either added or subtracted to/from your account whenever a position is left open after a certain time (the “Premium Time”). The premium time and the daily premium percentage can be found in the “Details” link next to the instrument’s name in the main screen of the platform.

Inactivity Fee – A fee of up to $10 will be levied, should you not use the trading platform for a period of three months. This is to offset the cost incurred in making the service available, even though it has not been used. However, please note that the fee is only collected from the Real Money account and only when there are sufficient available funds in the account. In order to avoid this fee, simply log into your trading account from time to time, as this is deemed sufficient activity to prevent a fee from being charged.

Guaranteed Stop Order – if you choose this feature, please note that as it guarantees that your position (trade) closes at a specific requested rate (price), the trade is subject to a wider spread. For more information, please refer to FAQ topic “Trading” → “What is a Guaranteed Stop Order?”

Rollover Adjustment – whenever a futures contract reaches its expiry date, and an automatic rollover is defined for the instrument, all open positions and orders are automatically rolled-over to the next futures contract. In order to nullify the impact on the valuation of the open position, given the change in the underlying instrument’s rate (price) for the new contract period, a compensating adjustment is made to the account. Stop Orders and Limit Orders are also adjusted, to reflect the rate (price) of the instrument in the new contract. For more information, please refer to FAQ topic “Financial Instruments” → “Do you offer a Rollover Service?”

* For further information on fees please refer to the User Agreement

Does Plus500 charge an overnight fee?

An overnight fee, called a “Premium”, is either added or subtracted to/from your account whenever a position is left open after a certain time (the “Premium Time”). The premium fee percentage is based on the interbank rate of the currency the instrument is traded on, to which an adjustment is made as per a fixed Plus500 fee. The premium time and the daily premium percentage can be found in the “Details” link next to the instrument’s name in the main screen of the trading platform. For more information about fees, please read “Do you charge any fees?”

Do you offer a Notifications service?

Yes, and it is completely free! You can receive notifications and alerts each time you open/close a position, when an instrument reaches a specific rate (price), prior to a Margin Call, etc. Using this service, you gain a certain degree of control over your Trading Account, even when you are logged out of the trading platform.

You can set notifications by clicking on “Account” → “Notifications” (in the Windows and Web trader) and choosing whether to receive them by email/SMS. If you set notifications via our apps (“Menu” → “Account” → “Notifications”) you can also request to receive Push notifications.Please note that these are notifications only, and in order to monitor your trading status and take any action such as opening/ closing a position you need to log into the trading platform.

Moreover, the notifications and alerts are not guaranteed, as they are delivered by third parties. You are solely responsible for monitoring the positions in your account, and taking any necessary actions, for example but not limited to: remitting funds and closing positions.

Do you report taxes?

It is your responsibility to report and pay tax according to the laws in your local jurisdiction. Moreover, in certain countries we are obligated to withhold tax at source. Please refer to the User Agreement for the relevant provisions on this matter in your jurisdiction.

How can I assess the financial status of my trading account?

You should familiarise yourself with the following definitions:

Balance: deposits – withdrawals + P&L of closed positions. It does not include the profit/loss of the current open positions.

Available Balance: balance + P&L of open positions – initial margins.This is the amount you have available on your account.

P&L: profit + loss + daily premium * number of days.This is the total profit and loss for all open positions including daily premiums.

Equity: balance + P&L of open positions.This is the current value of your account.

This information is available to you on the main platform screen.

Further information about the current financial status of your account can be found in your “Account Snapshot”. To review it, click on “Funds Management” → “Account Snapshot”, or “Menu” → “Account” → “Account Snapshot” in the apps.

How can I avoid a Margin Call?

Customers should monitor their balance at all times and make sure that they have sufficient funds in their trading account to maintain their open positions. Moreover, customers can request to receive a notification by email/SMS/Push in case the account’s equity is getting close to the total maintenance margin value. To do so, click on “Account” → “Notifications” or if you are using the mobile apps, click on “Menu” → “Price Alerts” → ”Notifications”.

This service is free of charge and sent through public telecommunications, therefore we cannot guarantee that you will receive these notifications. For more information, please read “Do you offer a Notifications service?”

How do I calculate my Margin requirements?

Initial Margin = (position’s opening price*size of the trade)*initial margin percentage.For example, let’s suppose you buy 30 Facebook stocks CFDs for $75 each (a “Buy” position), then the value of the position would be 30*75=$2250. If the Initial margin percentage were 10% then the required initial margin would be 10%*2250=$225.

Maintenance Margin = (position’s opening price*size of the trade)*maintenance margin percentage.For example, let’s suppose you buy 30 Facebook stocks CFDs for $75 each (a “Buy” position), then the value of the position would be 30*75=$2250. If the maintenance margin percentage were 5%, then the required maintenance margin would be 5%*2250=$112.5

How do I close a position?

To close a position, click on the “Close Position” button on the main screen or in the “Open Positions” tab. Once you have clicked this button, a pop-up box will appear and you will need to confirm or cancel your request to close the position. In this pop-up box, you also have the option to partially close your position. For example, if you have a position on Natural Gas of 2000 contracts, you can choose to close 1000 contracts and to be left with a smaller position.

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, and the position screen in the form of a pop-up box will be opened (for some instruments, you will see a “Short” button – “going Short” means opening a sell position). 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.

To learn more about margin requirements and Stop Orders, please refer to: “What are the Margin requirements?” and “What kind of Stop Orders do you offer?”.

Trading Example:

You have $5000 in your account.Balance (Deposits – Withdrawals + P&L of closed positions): $5000P&L (Total profit and loss of all open positions including daily premiums): $0Available 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): 20Total value: 20*$750= $15000.

Initial Margin (amount required to open the position): 10% of 15,000 → $1500.Maintenance Margin (amount required to maintain the position): 5% of 15,000 → $750.

Available balance after opening this trade/position: ($5000 – $1500) → $3500.

Alphabet’s buy rate increases to $760 and you decide to close your position.P&L: 20* ($760 – $750) = $200Balance: ($5000 + $200) = $5200Available Balance: $5200Equity: $5200

Therefore, the position closed with $200 profit.

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.

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.

Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Trading CFDs may not be suitable for you. Please ensure you fully understand the risks involved.

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.

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.

With Plus500 you cannot lose more funds than you have available on your account.

Please be aware of the risks involved. For a summary of the risks involved, please refer to “What are the risks involved in trading CFDs?”.

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”.

* For more information, please refer to FAQ topic “Financial Instruments” → “What is an expiry date of an instrument?” and “Do you offer a Rollover Service?”

What does “Leverage” mean?

Leverage is a concept that enables you to multiply your exposure to a financial instrument, without committing the whole capital necessary to own the physical instrument. When trading using Leverage you only need a fraction of the total value of your position, the rest is effectively lent to you. 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, the term leverage is used when a small change in the price of the CFD is amplified into a bigger change, so that the CFD offers an “accelerated” return.

Leverage of “10%” (or 1:10) means that if the price of the underlying asset changes by 1%, it is as if the price of the CFD changed by 10%. For example: a $10 balance leveraged by 1:100 increases to $1000. This allows you to buy up to $1000 worth of instruments. Information about leverage can be found by clicking on the “Details” link next to the instrument’s name in the platform’s main screen.

Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Trading CFDs may not be suitable for you. Please ensure you fully understand the risks involved.

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. The Order will expire in 30 days if a position has not been opened.

For example: Oil’s Buy rate is $72 per barrel (CFD). You set an Order to open a position on Oil at the requested Buy rate of: $70. In one movement, the instrument’s Buy rate decreases from $72 to $68. Your Order would then be executed at the rate (price) of $68 – as this is the first available rate (price) after your requested rate (price).

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.

What is a “Close at Loss Order” (or Stop Loss Order)?

This feature allows you to set a specific rate (price) at which your position will close, in case the price moves against you, in order to minimise your loss. Once this rate is reached or passed (as sometimes the price can ‘gap’ and move past the designated level), the Stop Order will be triggered and your position will be automatically closed. This feature is free of charge. There is no guarantee your position will close at the exact price level you have specified, because of ‘slippage’. Slippage can occur due to volatile price movements. When the market reaches or surpasses the specific price you set for the position to close, the position will close at the next best available price which can be a better or a worse price than the one you have set.

For example: Alphabet’s Buy/Sell rates are $500/$498.You buy 10 shares CFDs of Alphabet and set a Stop Loss at the Sell rate of $450.If Alphabet’s price suddenly drops from $498 to $400, the trade will close at $400 instead of $450, which was the Stop Loss level you initially set. Since the Stop is not guaranteed, when the market suddenly dropped and passed $450, the position was triggered to close at the next best available price which was $400.

* Note that Plus500 also offers a “Guaranteed Stop Order”. To learn more, please read: “What is a ‘Guaranteed Stop Order’?”

What is a “Close at Profit Order” (or Stop Limit Order)?

This feature allows you to set a specific rate at which your position will close , in order to protect your profit. Once this rate is reached or passed, the position will automatically close. This feature is free of charge, but does not guarantee your position will close at the exact price level you specify.

For example: Alphabet’s Buy/Sell rates are $500/$498.You buy 10 shares CFDs of Alphabet. You place a “Close at Profit Order” at the Sell rate of $550.Alphabet’s Sell rate increases to $550 → the stop is triggered and the position closes at $550. If Alphabet’s Sell rate increases to a higher rate than $550, the position will be triggered to close at the next best available rate which surpasses your requested rate.

What is a Gold account?

As a result of system enhancements, all Plus500 trading accounts are gradually being upgraded to “Gold accounts”, which have different units of trade size and a 5% discount on all premium charges.Each instrument has a different unit of trade size, and therefore you are advised to use the ones that best suit your trading needs.

What is a “Guaranteed Stop Order”?

During certain market conditions (in a volatile market, for example) your Stop Loss Order might not be executed at your exact preferred rate (price). This feature will force the position to close at your chosen rate (price) even if the market price surpasses it. Once your stated level is reached, the position will automatically close. This feature is not available for all instruments, and a fee is charged via a wider spread.

Guaranteed Stop Order features:

  • Can only be placed on a new position and cannot be added to an existing one.
  • Can only be activated/edited during the instrument’s trading hours.
  • Once the Guaranteed Stop Order is placed, it cannot be revoked, however the level can be changed.
  • The wider spread charged when a Guaranteed Stop Order is placed is non-refundable once activated, and is visible prior to the placing of this type of Order.
  • A Guaranteed Stop Order must be set within certain distances (minimum and maximum distance) from the current rate (price) of the instrument as shown on the trading platform.

To learn how the Guaranteed Stop works, please follow this example:

Alphabet’s Buy/Sell rates are $500/$498.You buy 10 shares CFDs of Alphabet. Let’s say that the Guaranteed Stop Order wider spread is $10.You place a Guaranteed Stop at the Sell rate of $450.Alphabet’s Sell rate drops to $400 → the position will be closed at $450 and not at $400.P&L with Guaranteed Stop: ($450 – $500)*10 – $10 = loss of $510.P&L without Guaranteed stop: ($400 – $500)*10 = loss of $1000.

What is the Initial Margin?

In order to open a new position, you must have a certain amount of funds in your trading account (your account’s equity must exceed the initial margin level requirement). To view the initial margin requirement for a specific instrument, go to the main screen of the Plus500 trading platform, select the financial instrument and click on the “Details” link next to it.

What is the Maintenance Margin?

The maintenance margin level is the amount of equity a customer should maintain in order to keep a position open. To view the maintenance margin requirement for a specific instrument, go to the main screen of the Plus500 trading platform, select the financial instrument and click on the “Details” link next to it.

For more information about the consequences of insufficient funds to meet the maintenance margin requirement, please read: “What is a Margin Call?”.

What is a Margin Call?

Should your equity fall below the maintenance margin amount, Plus500 may make a Margin Call or provide you with a certain time frame to add funds to the account or to close the position(s) yourself. In the event that you have not met the maintenance margin requirement by the end of the grace period or your account has gone into negative equity, the position(s) will be closed at the price available on our platform at the relevant time.

What is the minimum amount required to start trading?

Trading at Plus500 is conducted by opening positions on financial instruments. Each instrument has a defined “Unit Amount”, which is the minimum size of trade or number of contracts/shares etc. to open a position. This information is located in the Details link for each instrument, along with other features, such as margin requirements, leverage, trading hours, etc.

Additionally, there are minimum deposit amounts per payment method used, which can be viewed on the “Funds Management” screen on the Plus500 trading platform.

What is a “Trailing Stop Order”?

A Trailing Stop Order is designed to protect profits by enabling a position to remain open as long as the price is moving in the right direction, but closing the trade as soon as the price changes direction by a specified number of pips.Trailing Stop Order for Buy positions is used to protect profit as the instrument’s price rises and limit losses when its price falls. Trailing Stop Orders for Sell positions is used to protect profit when the instrument’s price falls and limit losses when its price rises. This feature is free of charge, but it is not guaranteed that your position will close at the exact price level you specify.

For example, you buy an instrument at a rate (price) of 1.5 where 1 pip = 0.1. You set a Trailing Stop Order at 5 pips therefore it sets a Stop Loss Order at the rate of 1.0. If the instrument’s price increases in your favour to 2.2, then the Trailing Stop Order sets a Stop Loss Order at 1.7, therefore if the price then drops to 1.7 or below, the position will be automatically closed.

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. The Order will expire in 30 days if a position has not been opened.

For example: Oil’s Buy rate is $72 per barrel (CFD). You set an Order to open a position on Oil at the requested Buy rate of: $70. In one movement, the instrument’s Buy rate decreases from $72 to $68. Your Order would then be executed at the rate (price) of $68 – as this is the first available rate (price) after your requested rate (price).

What kind of Stop Orders do you offer?

You can use 4 types of “Stop Orders”:

  • “Close at Loss Order” (or Stop Loss Order)
  • “Close at Profit Order” (or Stop Limit Order)
  • “Trailing Stop Order”
  • “Guaranteed Stop Order”

What are the risks involved in trading CFDs?

There are a number of risks involved in trading CFDs. These risks may lead to unfavourable financial outcomes for you. Monitoring of all risks associated with your trading is your responsibility. You should not use our services unless you fully understand the financial products, and the benefits and risks associated with them. Some of the risks associated with using our CFD trading facilities include:

  • Market volatilityMarkets are subject to many influences which may result in rapid price fluctuations. Because of this market volatility, there is no CFD transaction available via our trading platform that can be considered “risk free”. Given the potential levels of volatility in markets, it is recommended that you closely monitor your transactions at all times. For example: the value of investments denominated in foreign currencies will be impacted by both changes in the rates of exchange and market movement.
  • Counterparty RiskGiven that you are dealing with us as a counterparty to every transaction, you will have an exposure to us in relation to each transaction. In all cases, you are reliant on our ability to meet our obligations to you under the terms of each transaction. This risk is sometimes described as counterparty risk.
  • Leverage RiskTrading CFDs involves a high degree of leverage. You can outlay a relatively small initial margin which secures a significantly larger exposure to an underlying asset. The use of leverage magnifies the size of your trade, so your potential gain and your potential loss are equally magnified. You should closely monitor all of your open positions.

Please refer to the ‘Risk Disclosure’ document available on the Plus500 website for a detailed description of the risks involved in trading CFDs.

Why can’t I close my position?

It is only possible to close a position (trade) during the relevant instrument’s trading hours. In addition, occasionally instruments are temporarily unavailable for trading when market events restrict price feeds, for example but not limited to: extreme volatility, illiquidity, underlying market suspensions, etc.

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