Trading

Automatic Trading Plus500

For automated trading Plus500 is one of the most innovative and certainly easiest to set up. It allows you to create so-called “automated trading” orders to open and close positions automatically.

You can test the Plus500 automated trading features yourself by accessing the free demo, where you will have 40,000 virtual euros available to trade on the CFD market on stocks, Forex, commodities, indices, ETFs, cryptocurrency and more.

In this article, we will see what they are and how to apply the automated trading features offered by Plus500.

Stop Loss

Stop Loss is an automatic trading function with which you can set a certain price quota reached at which the position will be closed automatically.

Example: the price is 100 and I open a buy position with Stop Loss at 90. If the market goes down and the price falls to 90, the position will close automatically.

Similarly, if the price is 100 and I open a sell position with Stop Loss at 110, the position will close automatically if the price reaches 110.

Stop Limit on Plus500

Plus500’s Stop Limit (on other platforms called “Take Profit”) is also an automatic trading function that is used to set a certain price quota at which the position will be closed by the platform.

Example: the price is 100 and I open a buy position with Stop Limit at 115. In case the market goes up to 115, the position will be closed automatically, saving my profit up to that point.

Similarly, if the price is 100 and I open a sell position with Stop Limit at 80, the position will close automatically if the price reaches 80.

Plus500’s Operating Stop

Operational Stop is a rather complex automatic trading function, but the trader only needs to understand its usefulness.

With the Operational Stop, a position to which a Stop Loss order has already been applied, the Stop Loss level is automatically updated in case the market moves favorably.

Example: the price is 100 and I open a buy position with Stop Loss at 90. In case the price moves to 105, the Stop Loss would automatically rise to 95. Again, if the price moved up to 200, the Stop Loss would move up to 190. This means that in case the market moves in favor for a long time, the Stop Loss would “save” all the profits accrued up to that moment.

Guaranteed Stop On The Plus500 Platform

The Guaranteed Stop is an automatic trading function that Plus500 only activates for part of its assets. This in fact is thought as “insurance” for the user that is penalized by a very sudden and strong rate variation. The Guaranteed Stop, however, requires an extra spread (an additional cost for opening the position).

Purchase Order At A Certain Rate

Another important automatic ordering tool offered by Plus500 is the “buy/sell only if rate is” order.

With this function, you can order the platform to open a buy (up) or sell (down) position only when the quote reaches a certain level.

Example: the current price is 100, but I ask to open a buy or sell position only when it reaches 110.

Changing An Automatic Order In Progress on Plus500

In the lesson about how to change an order in progress, in our Plus500 guide, we saw how you can easily change an automatic order even though it has already been activated. This can be done for all types of orders except the operational order.

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