Posted in: Basic trading terms

101trading Apple shares on plus500

Tutorial: How to Buy and Sell Apple Stocks on Plus 500

If you’re a novice investor, we suggest that you learn how to buy and sell Apple stocks. Apple receives more press coverage than any other company. You’ll always find options and news on what the company is doing and if their stock is either a “buy,” or a “sell.” Anyone that’s planning on obtaining Apple stock should understand their risk and trade cautiously. While they are known as a popular stock option and one of the most well-known brands in the market, they are known to show wild gyrations on occasion.

Because of this, we’ve decided to use this tutorial to teach investors how to buy and sell Apple shares on Plus 500’s exchange. Plus 500 is a reputable broker who’s been in service for over 9 years. Learn how to invest in the largest technology stock to experience potential gains in your portfolio.

 

What Are Apple Stocks?

While there have been some periods in Apple’s history where investors might have experienced some huge declines in share price, the long-term history of owning Apple stocks has brought some surprising high gains.

Today, the company stands at record highs. In fact, it’s overall annual returns for its shares increased up to 35% throughout the past 15 years.

Here are a few reasons why you should buy and sell Apple stocks:

  • Still Affordable: In previous years, APPL’s stock has gained around 10x-12x earnings, while investors doubted the growth in its earnings. Out of the most powerful tech companies, Apple is the cheapest in the market. If analysts are correct, Apple might reach up to 14x in gains within the next year. Based on its respectable divided, Apple is a safer haven in today’s stock market.
  • Increasing Dividends: While most technology companies aren’t known for giving dividends. However, Apple is breaking the mold with a dividend increase of 502%. Thus, having one of the fastest dividends within the S&P 500.
  • Apple Could Potentially Be the First Trillion Dollar Company: Apple has been on a large growth period in 2017. It has increased its shares by up to 26% resulting in a market share of $760 billion. Since it’s expected to increase by another 26% in 2 years, Apple has a high potential of becoming the first trillion dollar company in the market.

 

How to Buy Apple (APPL) Stocks?

With Plus 500, investors can buy and sell Apple stocks with ease. All it requires is for you to create an account to start making trades. Follow these steps to make trade stocks on their exchange and gain potential profits in the long term.

 

1: Create a demo account with Plus 500.

 

2: Click the TRADE button in order to start trading Apple shares within the market and open a position. You can either search for APPLE on the “Search our Instruments” search engine or Shares > USA > AL-AM > APPLE. Now you are able to buy and sell Apple stocks within the market.

How to buy and sell Apple stocks on Plus500 broker

How to buy and sell Apple stocks on Plus500 broker

 

3:Click the BUY button if you plan on buying Apple stock. You can increase or decrease the number of shares you want to buy by pressing the plus and minus buttons on right side of the screen.

How to buy and sell Apple stocks on Plus500 broker-2

How to buy and sell Apple stocks on Plus500 broker-2

 

4: To sell, press the SELL button located to the left of the buy button. Here, you can either short the stock and close your position. We recommend you try selling your position once it reaches a certain amount. Congratulations, now you know how to buy and sell Apple stocks!

How to buy and sell Apple stocks on Plus500 broker-3

How to buy and sell Apple stocks on Plus500 broker-3

 

Concluding Thoughts

Overall, we think that you should use Plus 500 to buy and sell Apple stocks. The company is known for their outstanding service, easy to use interface, and advanced trading options. Because of this, you’ll find it easy to create an account and get started trading today.

Once you make an account, remember to practice trading safely. This prevents you from experiencing a high-risk loss.

Do you need any extra assistance to help you get started? Are you confused on how to buy and sell apple stocks? Or do you need help on trading a different option on Plus 500?

 

Share in the comments below.

 

 

 

 

 

 

 

 

101trading Facebook shares on plus500

Plus 500 Tutorial: How to Buy and Sell Facebook Stocks

It wasn’t until May 18th, 2012 where the company allowed investors to buy and sell Facebook stocks within the NASDAQ market. Facebook is a stable company, and is a popular choice amongst novice and veteran traders. Thus, it’s a great choice for first time investors to get started in the stock market.

We’ll show you how to get started trading this lucrative stock option!

Benefits of Owning Facebook Stocks

Facebook is one of the largest social media brands because of its huge competitive advantage. For instance it has a network effect where each person that signs up to Facebook, it gives people that aren’t on the network the incentive to sign up on it. Who wants to use a social media platform if their friends aren’t on it.

Due to its strong competitive edge, Facebook currently has over 2.07 billion people signed into its network. Owning a Facebook stock is a great idea as its a reputable company that has surpassed competing social media sites such as Myspace and Vine.

How to Buy and Sell Facebook Stocks on Plus 500

Here are the directions to help first time investors buy and sell stocks on Facebook:

 

1: Log in your Plus 500 account through the web trader.

2: Click on the TRADE button. This displays the multiple instruments that you can invest in on Plus 500’s page. Plus 500 is one of the only online brokers that provides this variety of trading instruments. It allows you to trade ETFs, Stocks, Forex, and Commodities all around the world.

3: Go to Shares and then click USA > F > Facebook. Alternatively, you can search Facebook in the “Search our Instruments” search section. Type in Facebook, and it will allow you to buy and sell facebook stocks.

how to buy and sell Facbook stocks on Plus500 broker

how to buy and sell Facbook stocks on Plus500 broker

4: When you click on the Facebook stock, it will show you information about it and how to buy and sell it within the exchange. To buy, press the BUY button. We recommend that you have a stop-loss and stop-limit to ensure that you receive the most profit while only experiencing minimal losses.

how to buy and sell Facbook stocks on Plus500 broker -2

how to buy and sell Facbook stocks on Plus500 broker -2

5: If you want to sell your Facebook share, press the SELL button. This allows you to close the position and gain profit or stop the share from becoming too negative. Follow these steps to ensure that you know how to buy and sell Facebook stocks.

how to buy and sell Facbook stocks on Plus500 broker -3

how to buy and sell Facbook stocks on Plus500 broker -3

Terms You Need to Know

In this last section, we’ve compiled the most popular terms that most first time investors should know before trading. This will help you get more in depth knowledge within the market and learn how to trade more effectively.

Premium: When an investor keeps a position open overnight, a premium is either added or subtracted from their position. This means that you’ll either gain a small amount of money for the overnight position, or you’ll have to pay a small fee. The premium is usually low so you don’t have to pay too much attention to it when you’re trying to buy and sell facebook stocks.

Trading Hours: This is one of the most essential things first investors need to know. Plus 500 will automatically change to fit your region’s time zone. For instance, American stock is open at 9:30AM-4:00PM on American time. Plus 500’s automatic time adjustment feature is great as it allows users to time their trades correctly.

Maintenance Margin: You need to understand this because if your position reaches below the maintenance margin point, it will automatically close. Make sure to always keep your account balance above this margin. Fortunately, the margin is already calculated and placed on Plus 500’s top header and is usually a low amount.

With these terms, you’ll get a basic understanding on how to buy and sell facebook stocks. When trading, always research the history of the stock (sentimental analysis) either through analyzing the graphs (technical analysis). We suggest that you start with demo trading until you’ve developed a few trading strategies that are successful before risking your actual income.

Closing Remarks

When you start to buy and sell Facebook stocks, you should do so at your own risk.While the market is volatile, novice investors use Facebook shares due to its low risk. Thus, use Facebook shares to help diversify your portfolio and aid you in increasing your trading knowledge.

Do you have any questions or concerns when obtaining Facebook stock?

Let us know in the comment below.

 

 

 

 

 

How to Buy and Sell Cryptocurrency on Plus 500

Learning how to buy and sell cryptocurrency is an important skill for all trader levels. Plus 500 has made a strong impact and made a good reputation in the CFD market. It has become a financial service entity in countries such as Australia, Cyrus, United Kingdom and Israel. People use Plus 500 because of its ability to help novice investors navigate through the volatile trading world of cryptocurrency.

Since 2013, Plus 500 has become the first online broker to provide a binary trading option on the world’s first cryptocurrency Bitcoin. This made it a popular choice for anyone that needed to trade in a simple yet effective way. We’ll show you how to use its network to get starting on your crypto trading journey.

What is Cryptocurrency?

A cryptocurrency is a virtual or digital currency that is secured via cryptography. Unlike fiat currencies and stock trading, cryptocurrency is decentralized and can be traded at any time. Because of this, it’s becoming a popular choice for investors who are interested in short and long-term trading. Cryptocurrency’s defining feature lies in its organic nature. This makes it theoretically immune to government manipulation interference. Because of this, users can buy and sell cryptocurrency faster than they can than traditional stock options.

 

What are the Benefits of Buying Cryptocurrency?

Here are a myriad of benefits you’ll receive when you buy and sell cryptocurrency:

  • Low Fees: With cryptocurrency, miners are paid by the network they are using to create the currency. This results in low transaction fees, making it easier for crypto holders to trade internationally. While there is no cryptocurrency/bitcoin transaction fee, many people expect that users will use a third party service such as Coinbase. These third-party services help people create and manage their cryptocurrency wallets.
  • Accessibility: As of now, there are about 2.2 billion individuals that have mobile phones or internet, who don’t have access to traditional exchanges. These people see the cryptocurrency market as a way to trade with others without being stopped by government regulation. Because of this, cryptocurrency is easily accessible and is a great way to trade services world wide.
  • Universal Recognition: Since cryptocurrency is not tied to exchange rates, transaction charges, interest chargers, or additional charges within a country; it can be used and trade internationally without experiencing any issues. As a result, you save lots of time and money when you buy and sell cryptocurrency.

 

How to Buy and Sell Cryptocurrency

Within the cryptocurrency marketplace, Plus 500 has created an established reputation. It’s known as one of the most user-friendly and intuitive trading platforms within the CFD marketplace. Plus 500 is designed to appeal to entry-level traders and is open to the mass market. For traders who want a straightforward solution to buy and sell multiple instruments (CFD, Stocks, cryptocurrencies, etc.). To open up a trade, start by picking the category of financial instruments on the left hand of the screen. Cryptocurrencies are placed on the crypto tab (for demonstration purposes only). Once you’ve click the cryptocurrencies category, you’ll see a screen that looks like this.

Now you can buy and sell cryptocurrency within Plus 500’s exchange. For this tutorial, we’re going to show you how to buy and sell Bitcoin. Bitcoin is the most commonly known cryptocurrency and is good for first-time traders.

buy and sell cryptocurrency -1

buy and sell cryptocurrency -1

Click the BUY button to buy Bitcoin from the exchange. We suggest that you create a stop-loss (minimizes your risk) and a stop-limit (capitalizes profits) to ensure that you trade bitcoin safely without losing too much of your initial investment.

buy and sell cryptocurrency -2

buy and sell cryptocurrency -2

 

Whether you’re short-term trading or want to close your position, you can get with Plus 500. Click the SELL button to remove your Bitcoin option and short it. With Plus 500, you can buy and sell cryptocurrency in a clear interface within seconds.

buy and sell cryptocurrency -3

buy and sell cryptocurrency -3

Conclusion

Every investor that’s starting of in crypto trading needs a broker that’s reliable and trustworthy. Fortunately, Plus 500 has provided their service in 2008 giving almost a decade of safe stock and trading options. Conclusively, new crypto traders should use Plus 500 if they want to get a good start in the crypto market.

 

Do you have any questions about cryptocurrency or something you’d like to share?

 

 

 

 

 

 

 

fundamental analysis on commodities

Fundamental analysis on commodities

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Fundamental Analysis on commodities

There are types on fundamental analysis that we used here at 101trading. The first one is fundamental analysis on shares/stocks, the second one is fundamental analysis on forex and in this article we are going to discuss the fundamental analysis on commodities. In this article you will learn what a fundamental analysis on commodities is and you will learn on how to apply it for your trading.

What is a fundamental analysis on commodities?

A fundamental analysis on commodities is a analysis that is focused on the factors that have impact on the supply or demand side of a commodity. With the fundamental analysis on commodities traders and investors can try to predict of what the price of a commodity will be like in the future.

Fundamental analysis on commodities: factors that can influence the demand size

When are you are doing a fundamental analysis on commodities one of the first thing that you should be checking is the demand side of that commodity. For many commodities the general rule is that when the economy of countries are growing the demand side for commodities will grow as well. And because of that the demand side will grow faster then the supply side of the commodity. In this case the supply can not meet up with the demand so the producer will sell its commodity to the highest bidder. So in general when the demand keeps growing and the supply side stay still, the prices for commodities will increase.

What are the factors that can influence the demand size of a commodity?

There are many factors that can influence the demand side of commodities. In this article we are going to discuss the three major factors that can have influences on the demand for commodities.

Price

Price is one of the factors that has influence on the demand side of a commodity. The general thumb rule is that when the prizes of a commodity decreases the demand will increase. Its simple economics. For example if the gas price is £ 1,- per litre, you would use gas more then if the gas price was £3,- per litre. The cheaper it is to more you will use.

Economic growth

Economic growth has a impact on the demand side of the commodity as well. If they economy is growing as expected or better then expected the price of commodities will grow in value. However if the economy is growing slower then expected the price of commodities will go down. As you may guess if there is no economy growth in the present or in the future the value of a commodities will go down.

Politicians and central banks

Politicians and central banks are the ones that creates policies that should support the economy of their country. Sometimes it works well and sometimes it doesn’t. Although it may take a while before the policies get implemented the markets usually reacts first. Causing either a increase or decrease in demand.

What are the factors that can influence the supply side of a commodity?

Price

While a decrease in price creates a increase in the demand. The decrease in price of commodities has a other effect on supply. If the prices of commodities decrease  the supply will decrease as well under normal circumstances. The reason for that is that it doesn’t makes any sense for a producer to produce a lot of commodities for a low price. When the prices of commodities increases the supply will increase as well under normal circumstances. A high price is attractive for a producer to produce a lot of commodities as he can earn more money.

Economic growth

A increase in economic growth leads to a higher demand which results in a higher price for commodities. And as you know by now a high price for commodities will increase the supply of commodities. When the economic growth is below expectations the demand will decrease which leads to a lower price of commodities. As you know a lower price in commodities equals a smaller supply of commodities.

Politicians and central banks

Politicians and central banks are the ones that creates policies that should support the economy of their country. Sometimes it works well and sometimes it doesn’t. Although it may take a while before the policies get implemented the producers usually watch from the sideline what effects it has on the prices and prepare measurements to take when it is needed. Causing either a increase or decrease in supply.

How to make money with fundamental analysis on commodities?

The first thing in making money with fundamental analysis on commodities is to understand the factors that have influences on the demand and supply of commodities. The second thing on the fundamental analysis on commodities is to remember these two formula’s:

1. When the demand is bigger then the supply = a increase in prices of commodities

2. When the supply is bigger then the demand = a increase in prices of commodities

The third thing that you need know is that when the prices of commodities are too low , the producers will shrink the supply so that the demand is bigger then supply again which will lead into a increase of prices for commodities. When you hear that the producers are announcing that they will shrink the supply then you will know that a bullish trend is coming for the commodities. As a trader and investor you can make money by going long.

The opposite will happen when the producers are announcing that they are going to increase the supply. The prices of commodities in this case will go down. You as a trader and investor can make a huge profit by going short.

If you want to make money in commodities, you can open a demo account here: commodity demo trading account or open a real account here: trading commodities with a small budget

fundamental analysis on forex

Fundamental Analysis on Forex: How to use for trading forex

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Fundamental Analysis on Forex

Today in this article we are going to discuss what a fundamental analysis on forex looks like. You will gain insight and learn how to use the fundamental analysis on Forex the right way.

What does a fundamental analysis on Forex looks like?

A fundamental analysis on forex is a analysis that focus on the development of the economy of a country to trade currency more effectively. In a forex fundamental analysis you will get to know what the economy situation is of a country, what policies or plans of the government are, speeches of big politicians, economic events and plans & statement of central. All these factors can influence the value of a currency big time.

What are the key factors to look at the fundamental analysis on Forex?

#Key Factor 1

The first key factor in the fundamental analysis on forex is the interest rate. The interest rate is one of the key factor that has a lot of influence on the value of a currency pair. For example when the central bank of a certain country increase the interest rate the value of the currency of that country will go up. The reason for that is that foreign investor can get a higher return if they invest in that country assets or expand their business there. When a central bank is weakening the interest rate then the value of a currency will go down. One of the reason for that is the investor get lesser profit from his investment as the asset of the country goes down in value.

#Key Factor 2

The second key factor in the fundamental analysis on forex is the employment rate. If the unemployment rate is low it means that there are a lot of people who is working. But it also means that there are lesser people available for work. So if a company needs a employee, the company will need to offer a higher salary to beat the competition. As a result of this the salaries will increase and therefore the pricing for the goods will go up. When the prices of good are increasing it means that the inflation is increasing. If the inflation rate is too high the central bank will have to step in. The central bank will increase the interest rate to keep the inflation rate under control. As you may know when a central bank increase their interest rate the value of a currency will increase.

#Key Factor 3

The third key factor in the fundamental analysis on forex is the economic data of a country. There is a wide range of economic indicators that provides economic data of a country. The most important economic indicators are: the GDP growth, Consumer confidence index, manufacture index, service index, inflation rate index, price index , jobs growth index and the investor confidence index. The best way to get these data is to check the economic calendar of investing.com. When you look at the their economic calendar you will see on which date the economic data will be released from which country. And you will see what the forecast are from experts. You will also see the symbols of bulls. The more bulls there are the more impact that economic data will have on the markets. Usually when the economic data is way below the forecast of the experts, the markets will go extremely bearish. And when the economic data is way above the forecast of the experts, the markets will go extremely bullish.

#Key Factor 4

The fourth and the last important factor in the fundamental analysis on forex is the policies and statements from the central banks and important politicians. The policies and statements from the central banks and governments have a huge impact on the value of currencies. The reason for that is both parties are responsible for the economic health of their country. When the economy is going bad both the government and the central bank have too come up with new policies to get the economy back on his track. In the anticipation of central bank or government economic help the value of a currency will either go up in value or go down in value. As a trader you can make a lot of money in this situation.

For example:

GBP/USD

Let’s say the Federal Reserve (American central bank) is increasing his interest rate while the BoA (central bank of Britain) does nothing. In this scenario the USD will go up in value while the GBP will down in value. If you were expecting that the GBP was going bearish against the dollar, then the best way to make money was by going short on the GBP/USD. And if you were expecting that the USD was going up in the value then the best way to make money was to buy USD/GBP.

How to use the fundamental analysis on forex for trading

In my experience the best way to use fundamental analysis on forex trading is too used it with technical analysis as well. To increase the chance of trading successfully you must understand what the are causes that can cause a change in the price of a currency. In my eyes the fundamental analysis on forex provides me the best understanding of why a price change might happen. And the technical analysis provides me the insight if that news or expectation of a cause is already priced in the markets or not. In other words I use the fundamental analysis on forex for reasons to buy or sell and I use the technical analyses for which price I would buy or to sell.

 

CFD broker

CFD broker, how to recognise a good one?

Ever wanted to make money whenever and wherever you want? Start trading now and receive a 25 dollar welcome bonus
Hi all,

Welcome to the final CFD course. In the first lesson I have explained what CFDs are and why they are a great investment tool. In the second lesson I have showed you on how you can make money on CFD trading and the third lesson I have explained you on how to calculate the cost and profit on CFD trading. In the last lesson I am going to give you some tips on how to recognise a good CFD broker.

Tip #1: A good CFD Broker must have a license

It’s of vital of importance that a CFD Broker must be licensed by the financial authorities. The reason for this that when a CFD broker has a license from a financial authorities you can be sure that the CFD broker is not a scam. For a CFD broker to get a license from the financial authorities is not easy and it is also very costly. So for a CFD broker to get a license that broker company must be organized well and have the financials to run the company.

Tip #2: Check reviews of CFD Broker

On our website you check the  a few review that we have done on some CFD broker. This is the link (if you want to check it out now): https://101trading.co.uk/beginners/compare-brokers/

The importance reviews is that it gives you an insight what other people are experiencing using that CFD Broker. Reviews can give you that information that you were looking for your decision making process. Its always good to see what people like and what people dislike.

Tip #3: Check the deposit and withdrawl rules of a CFD Broker

One of the most important to check when choosing a broker is their withdraw and deposit policy. Most broker has a easy deposit policy but a tightened restrict policy on withdraw money. Make sure you understand them.

Tip #4: Check the profitability of a CFD Broker

I always check the profitability of a broker.This is not easy to find as many brokers are private companies. So sometimes when I asked for a balance they won’t give me. The reason I check profitability is to check if the broker has money. It’s important that a broker has money , so that when I withdraw my investment including the profit that I know for sure that I will get the money in my bank account. Plus500 is one of the few brokers that gives you a insight into their financials. For example last year Plus500 made a profit of $102.5 million Us dollars.

Tip #5: Check if your money can be deposit in a segregated account

What is a segregated account? A segregated account is a money account where the broker can’t touch your money. Your money is separated from the brokers firm money. In case a broker goes out of business, your money will be still safe and returned back to you.

I hope these tips have helped you in choosing a good broker. After using these tips I end up trading at the Plus500 broker. If you are interested in opening a trading account at Plus500 feel free the click here: Open a trading account Plus500 or Open a free demo trading account.

If you have any questions or suggestion feel free to comment in the comment box and we will reply to you in 24 hours.

Read more about CFD Trading: How to make money with CFD Trading

 

CFD broker

CFD trading cost: How to calculate it in simple steps

Hi all,

In this third part of the online CFD course we are going to explain what the CFD trading cost are. The first part was all about what a CFD is and what the advantages were from using CFD. The second part of the online CFD course was about how you could make money with CFD trading. If you want to read part one and part two then click on the two links below.

Part 1 of the online CFD course: CFD is one of the greatest investment instrument for trading

Part 2 of the online CFD course: How to make money on CFD trading in a simple way

CFD Trading Cost: Kinds of cost

Before you are placing a CFD there some CFD trading cost that you should consider. At most CFD Brokers you will have to pay a commission fee, spread cost and a holding cost (if you are holding a CFD position longer then one day). However at Plus500, they only charge you the spread cost and a holding cost ( if you are the CFD buyer and if you are the CFD Seller you would receive a interest).

CFD trading cost of commission

When a CFD broker charge you a commission for each trade it will always consist out of the part. The first part of the commission is the minimum fixed commission price which is usually between 7 -9 pounds. And the second part of the commission consist a percentage of a trading value. So basically the higher the transaction trading value is the more commission you pay. Luckily there are some brokers  such as Plus500 and Markets.com that doesn’t charge these kinds of commission. If you want to know more about these two brokers then you can check them at our brokers review.

Spread cost

When you are  buying  and selling CFDs immediately, the spread amounts to the difference between what you paid and what you receive. If you sell share-based CFDs, you will receive interest. So basically when you begin CFD trading you will notice that the transaction fees is always related to your trade. A part of the CFD trading cost is called a spread cost which is the difference between the bid/buy price and ask/selling price.

Example:

Let’s say you want to trade in forex and that the spread is 2 pip. So which this means is that you transaction fee is 0,0002 cent per traded unit. If you are trading GBP/EURO with 100 pounds and a leverage of 1:200, your transaction fee will be ( 100 x 200 x 0,0002)= just 4 pounds.

Overnight cost

Unlike trading options CFD’s doesn’t have a expiration date. You can hold most of your CFD’s position overnight, weeks or months. However when  you hold a position overnight you will be charged interest. This interest is really small but you get charged for it because when you hold a CFD position overnight it will be seen as an investment that has been made with borrowed money. So in this case your broker(lender) have to charge you a little interest.

Example:

Let’s say you want to buy Starbucks CFD shares at a price of 50 pound a share with a transaction value of 10.000 pounds and you have a leverage of 1:20. With this leverage of 1:20 you will have to use only 500 pounds of your money instead of 10.000 pounds instantly. And you will hold this position for 10 days and sell those at 60 pounds per share.

So what would be your profit after deducting the CFD trading cost?

Initial trading value was £10.000,- which equals 200 Starbucks CFD shares.

Final trading value (after you have sold your position) is (£60,-x 200 Starbucks CFD shares)= £12.000,-

CFD trading cost = spread opening + spread closing + overnight cost.

spread opening cost= £20,-

spread closing cost= £20,-

overnight cost= the interest rate at most brokers is usually the Libore interest + 2,5%. Let say that the libor in this case was 2,5%. So the total interest rate for a overnight position in total is 5%. The overnight cost will be £10.000 (transaction value) x 5% (interest per night)/365 days= £1,36

The total overnight cost for holding it for ten nights will be £1,36 x 10= £13,69

In this case your net profit will be £12.000 – £10.000 -£ 20 -£20 -£13,69 = £1.946,31

So your return on the investment on CFD trading with only £500 pounds is nearly 400%!

Now your CFD trading cost could be more if the broker also charged you a commission on each transaction that you have made. Fortunately there are a few brokers that don’t charge commissions. One of them is Plus500. If you have any questions regarding this topic, please post them in the comment section below and we will answer it as soon as possible.

Read more about CFD Trading: How to make money with CFD Trading

Make money on CFD trading in a simple way

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cfd trading

In this CFD tutorial I am going to explain on how you can make money with CFD trading.Now if you don’t know what a cfd is then you should read this article: What are CFDs?

The possibility that cfd trading gives to a trader

One of the reason that I like CFD trading so much is that it gives you so much possibilities to trade. You can use cfd trading to make a trade in forex, shares/stocks all over the world, top Indices, commodities and all kinds of funds. For example if you don’t see any opportunities to make money in the FTSE then you can always look to the German market and see if Volkswagen share fits your requirement to make a decent profit. Or you can trade in gold by using cfd trading if you believe that gold market gives a  good opportunity to make a profit.

CFD Trading Step 1

The first thing you need in CFD trading is CFD broker. Its vital that you choose a good cfd broker. Because unfortunately there are still some brokers around that are scam. To avoid off getting a scam broker, you should take a broker that has licenses from Financial Authorities. In our brokers review you will find what our experiences are with different brokers. Our top picks at the moment are Plus500 and Markets.com. You can the reviews here: Plus500 Review & Markets.com Review.

CFD Trading Step 2

After you have open a CFD trading account or if you already have one then it is time to make some profit. Here is the first thing that you should do. Create a trading plan. A trading plan is a simple plan where it states why you want invest or trade  in this object and at which price point you should get in or get out. One of the best way of determine a buying point is to use make use of the horizontal lines and trend lines. By using both U can pinpoint the price point where you should enter the market (buy the object) or leave the market (selling the object). If you want to know more about buying signales and selling signales then read this article: buying & selling signals.

Protect the down size risk

Have you ever heard of the first two rules of Warren Buffet in investing?

Rule nr.1: Never lose money

Rule nr.2: Never forget rule number One!

I love that rule. That’s why I always use a stop loss order to limit my potential loss.

cfd trading limit potential loss

cfd trading limit potential loss

By using a stop loss order, I am in control of my risk management. Meaning that I can control my potential losses and keep it small when the trading doesn’t work out well. And when it works out well I can make a huge profit while my loss is small.

A CFD trading making money extra tip: Use a stop loss order to protect your profit.

A stop loss order is used to keep you from losing money but it can also be used to secure your profit. Let’s you say your current trade is making a profit. Then all you need to do is to move up the stop loss order.

Example:

Let’s say the stock that you have bought at 20 pounds currently has a value of 35 pounds. The best thing to do now is to move the stop loss order to a price of 33 pounds. This way if the stock suddenly drops in price to 25 pounds, you will still have a profit of 13 pounds instead of 5 small pounds. If you have bought the stock with cfd then you profit will be a lot bigger then 13 pounds per share because of the leverage.

 

 

CFD broker

CFD one of the greatest investment instrument

Using CFD gives you a lot of advantages in trading.

In this post I will answer questions regarding cfd (contract for difference) are. And what the advantages are of using contract for difference in your portfolio.

 

What is a CFD?

CFD stands for contract for difference. In a CFD the contract stipulates two parties, which is typically described as “ Buyer” and “Seller”, which the seller will pay to the buyer the difference between the current value of an asset and its value at contract time. And if the difference is negative the buyer pays instead to the seller.

In effect CFDS are financial derivatives that allow traders to make a profit when the market prices are moving up or when the prices are moving down. If you want to know more about CFDS then read this article: CFDS for beginners

What are the advantages of using CFD?

When you start trading with CFDs you will encounter the term leverage. Leverages are one of the biggest advantages that a CFD has. What it does is that it gives you the ability to invest largely with a small amount of money. CFD gives you the ability to take advantage of small price movement. And many traders are using CFD for this purpose only.

However, investing through a large lever brings with it certain risks. This article is part of the short course of how to invest in CFDs. When you are investing in CFD you will always use leverage. A lever is always displayed as a ratio, eg 1:50. When the lever is 1:50, this means that with a balance of € 1,000 you can invest as much as € 50,000. With this CFD leverage you can add a greater amount of securities to your portfolio.

How does a CFD leverage works?

The leverage works in a similar ways as a mortgage. When you want to buy a house, you will need make a down payment and get a mortgage. In this case the mortgage gives you the ability to buy the house that you want. When you sold your house you pay off the mortgage. And what you have left is your profit.

The same way it works with CFD leverage. Let’s say you want to buy 100 Starbucks shares. With CFD Starbucks shares you only make a small down payment to acquire 100 Starbuck shares and the broker will finance the rest.

The broker is behind much of the position and the difference between the opening and closing price will eventually settle with your own balance. You are at no time the owner of the security; the broker will control both the buying and selling. When investing in CFDs, you have no further responsibility since you are not the owner of the physical effect.

 

Advantages of using high leverage

A major advantage of a high leverage is the fact that you can also achieve high gains with low power. If the share price rises eg with a euro and you use a leverage of 1:50 then you immediately earn € 50.00. However, when the price falls a euro, you will lose the same amount. The gain or loss on your position is usually settles with your balance. Be careful with leverage! You will not be the first to directly leverage from one hundred to open a position. With a higher leverage also come increased risks, since each euro to fall in price much higher loss entails. The leverage effect can work both ways and it is important to deal responsibly with this. Don’t use the full leverage in the early stage and go only use this useful tool once you know how you can make money investing. Once you figure out of how it works. Then using leverage will give you big profits!

Want to give CFD a try? Then click here: Try CFD for free and make use of unlimited demo account

Read more about CFD Trading: How to make money with CFD Trading

What is a broker?

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What is a broker?

A broker is a person (or brokerage firm) who mediates in buying and selling trading instruments like stocks. As for online trading you will mostly have to sign up for an online broker which isn’t a person but a brokerage firm. For example: Plus500 is such an online broker with good reviews.

Their primary task is to act as an intermediator, but they can help you with other things as well, such sa:

  • Providing advise: investors or traders pay brokers a fee for trading advice.
  • Offering limited bank services: Brokers can offer you interest-bearing accounts and check writing.

How do online brokers make money?

You pay online brokers a commision for each time you buy or sell a stock or other trading instruments. It depends on which broker how much you have to pay.

There are also margin interest charges. This is interest charged to traders for borrowing against their brokerage account for trading purposes.

What else?

Lastly there could be service charges. These are charges for performing administrative tasks and other functions. For example, brokers charge fees to traders for individual retirement accounts (IRAs) and for mailing stocks in certificate form.

Important!

Any broker you deal with should be registered with the Financial Conduct Authority (FCA). The FCA regulates financial firms providing services to consumers and maintains the integrity of the UK’s financial markets.