Plus500 website

mkdon05

Hi All,

Im totally clueless about trading and markets but I was thinking about putting a small amount into an account on this website and have a go. One thing I dont understand from using the Demo trading account is when you buy say, 500 shares, and the share price is 345.00 it gives you a Value but you actually pay a security which is a much smaller amount.
Could anyone clarify that for me?

mkdon05

image attached

650Ginge

mkdon05 wrote: »

Hi All,

Im totally clueless about trading and markets but I was thinking about putting a small amount into an account on this website and have a go. One thing I dont understand from using the Demo trading account is when you buy say, 500 shares, and the share price is 345.00 it gives you a Value but you actually pay a security which is a much smaller amount.
Could anyone clarify that for me?

You need to do more research on this type of trading. I think you are looking at spread betting, you are not actually buying shares.

martyoo

Hi All,

Im totally clueless about trading and markets but I was thinking about putting a small amount into an account on this website and have a go. One thing I dont understand from using the Demo trading account is when you buy say, 500 shares, and the share price is 345.00 it gives you a Value but you actually pay a security which is a much smaller amount.
Could anyone clarify that for me?

That is because you are using leverage. Plus500 is a CFD provider.
I strongly suggest reading up on CFD's before moving from the demo account.

Contracts for difference

mkdon05

Just go to show how clueless I am on it all. I had a go with the demo account and gained over €2000 in profit. Admittedly it easy to do it when its play money!