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Dear Clients,
Plusmarkets ceased offering trading services last year in May. Trading and ancillary will not recommence, and the brand/platform will be permanently discontinued.
For the clients with remaining balances, kindly send a withdrawal request through your login or via chat or email. If there are any queries or concerns relating to your account or any other matter, please email us at [email protected]
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Plusmarkets
What are CFDs?
A Contract For Difference is a contract between two sides for the trade (Buyer and Seller) to exchange the variance in worth between the Open and Close price for a specific asset.
The trade opening pricing is the one in place while the contract is made while the closing pricing would be the price at which the agreement is carried out.
Basically trading Contracts For Difference comes down to an agreement amid yourself (Client) and the marketplace. You start a trade via purchasing a contract for a specific asset and close it by selling the contract to the marketplace, in hopes of making a return in the procedure.
The trade opening pricing is the one in place while the contract is made while the closing pricing would be the price at which the agreement is carried out.
Basically trading Contracts For Difference comes down to an agreement amid yourself (Client) and the marketplace. You start a trade via purchasing a contract for a specific asset and close it by selling the contract to the marketplace, in hopes of making a return in the procedure.
How to trade CFDs
Contracts For Difference are not automatically on the Buy spectrum. The same as with every trade, one may start a Contract For Difference trade on the sell spectrum. The core stays the same. Purchasing the contract back from the marketplace to close the trade would be done in the hope of potential returns.
Contract For Difference contract sizes are set. Contracts For Difference on shares, for instance, are created on the worth of a hundred shares of the firm at issue. For instance, a contract for Google shares will be for the worth of a hundred shares in Google. At the current pricing of $853.69, that will render a full contract worth USD 85,369.
The same as CFD FX trading, Contracts For Difference are leveraged assets. Trading with a 1:30 Leverage will effectively let you control USD 30 worth of trades for each dollar you deposit in the account.
“For difference”
At such a leverage*, you will require USD 2,845.56 in your account to trade a total contract of Google shares. Staying with the Google instance, if you think the share pricing is going to go up, you are going to purchase a contract that will be sold back at a bigger price. And here comes the “for difference” part. There’s no physical delivery of Google shares here. The contract is solely for the difference amid the opening and closing costs.
For example, we are purchasing a contract for Google at $853.69. Let us imagine that the share pricing climbs to $875.69. Closing the trade will bring a potential return of USD 22 for each share (875.69-853.69) for a total of USD 2,200 (22 x 100).
On the other hand, if we believe Google shares are going to go down in worth, we’d sell a contract at the $853.69 level. Assuming that the price goes down to $831.69, closing the trade once more brings a return of USD 22 for each share for a sum on the contract of $2,200. It should be highlighted that in case of opposite scenarios where the market is moving against us, this could lead to equivalent losses.
*Leverage 1:30 shown for demonstration purposes, current maximum leverage for CFDs on shares is 1:5
