Trading contracts for difference on Plus500.com is a great way to invest in Bitcoin and Litecoin. With its variety and low minimum account balance of $100, Plus500 offers a strong assortment of investments to develop a strong investment strategy around, alongside bitcoin and litecoin CFDs. Here is how to open an account and get started trading in BTC/USD and LTC/USD.
Register for an account on Plus500.com.
Before trading, you’ll need to create a Plus500 account (Click Here). On the homepage, click “Start Trading” in the navigation menu near the top of the page. This will bring up a page that asks you to Download or using Web Trader. Or you can also direct download trading client (Click Here).
The next page will be the login page for accessing your account after registration. First, click “New User” and enter your email address, desired username, and password. After you’ve confirmed your email address, you’re all set up to fund your account.
Fund your account and get promotional bonus
After signing into your account, you’re going to need to fund it. Plus500 accepts Visa/MasterCard, Skrill, PayPal, and wire transfers through a straightforward, easy-to-use process.
- Login to your Plus500 trading software you downloaded earlier, if you haven’t download then Click Here to download and install. After installation click on ‘New user’ and fill out the registration details.
- Look at bottom left corner and if you are in ‘Demo mode‘ then click on ‘Trade for Real’
- Click on ‘Funds Management’ in the lower left hand corner
- Select a deposit method
- Enter the bonus code (from the table below) in the deposit field
- The bonus amount will be added to your account once you have traded the required number of trader points
Please remember, your capital may be at risk. Never trade with money you cannot afford to lose.
Place BTC/USD or LTC/USD trade.
When signed in, you can simply click the “Forex” link in the left navigation menu. On the page that opens, click on the link “Virtual” which will bring up a screen with all of the Virtual Forex pairs than can be traded at Plus500. Where you will see Bitcoin and Litecoin Daily, click on your desired pair to bring up the price info, charts, and trading screen.
Note: Keep in mind the expiry date for trades, which is the date and time that positions will automatically be closed due to the nature of contracts for difference.. LTC/USD positions are closed automatically closed at 8:00 PM each day. (Check : Basics Of Bitcoin, Litecoin CFD Trading You Must Know)
Place an order.
After some due diligence, you should feel prepared to start trading. After choosing either BTC/USD or LTC/USD, you will be brought to a screen that shows the price at which you can buy or sell the CFD; with a difference of about 2% between them. Underneath the prices is valuable information you should familiarize yourself with and keep in mind when considering whether or not to place a trade.
In easy words : If you think price will go down, place your bet on falling price and Click on the “Short” button to enter the details of your trade. If you think price will go up, click on “Buy” button and enter the details of your trade.
You will be given the opportunity on this page to set either a market or limit order, set a profit-take and stop-loss price, and to allocate the amount of leverage you will use in the trade. In a market order, you agree to buy or sell at the current market price while a limit order allows you set a price that you are willing to buy or sell at and, if the market ever reaches it, your order will be executed. Profit-take and stop-loss prices are basically exactly as they sound: prices that close your trade if they reach a certain level of profit or loss to protect your from losing your gains or furthering your losses.
As you can see the above scrrenshot, Here i placed 10 Bitcoin buy order when current price was $382.20, i also put a stop profit @ €418.55 and stop loss @ €331.53, now if Bitcoin price crosses €418.55 level i’ll get €290.96 in profit, just in case market react opposite and price go downwards my stop loss will be active and cancels my order @ €331.53 with a total loss of €405.59.
Once you decide how you would like to trade, simply quick on the buy or sell price to either buy the contract for difference from the broker, and make money from an increase in price, or the sell price to sell it to the broker, and make money from a decrease in price. Follow the instructions on the page that comes up to complete the trade.
Note : While we all hope that we’re going to profit from every trade, it just won’t happen. Always remember that by trading CFDs customers can lose all the funds deposited. Please be aware of the risks involved. Plus500 is suitable for experienced traders and not for beginners. If you are newbie then you can try first with demo money too.
So whether or not, you’ve profited from a trade or not, you will eventually want to close it. On the page that you opened the position, it will now read “close position” under the price.
Also Check : An Introduction To Bitcoin CFD Trading For Newbies