In terms of automated trading, Plus500 is one of the most innovative and certainly easiest to set up platforms. It allows you to create a so-called “automated trading” order that opens and closes positions automatically.
You can personally test the automatic trading functions on Plus500 by accessing the free demo, in which you will have 40 thousand virtual euros to make your transactions on the CFD market on stocks, Forex, commodities, indices, ETFs, cryptocurrencies and more at your disposal.
In this article, we will know what they are and how to apply the automated trading features offered by Plus500. You can also check our complete Plus500 tutorial for free.
Stop Loss is an automatic trading function with which you can set a certain price quota at which the position will be closed automatically.
Example: The price is 100 and I open a buy position with a Stop Loss at 90. If the market goes down and the price drops to 90, the position will close automatically.
Likewise, if the price is 100 and I open a selling position with a Stop Loss at 110, the position will close automatically if the price reaches 110.
The Take Profit is also an automatic trading function that serves 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 a Stop Limit at 115. If the market rises to 115, the position will be closed automatically, thus saving my profit to date.
Likewise, if the price is 100 and I open a selling position with a Stop Limit at 80, the position will close automatically if the price reaches 80.
The Trailing Stop is a rather complex automatic trading function but the trader just has to understand its usefulness.
When an operational stop is applied on a position in which a Stop Loss order has already been used, the Stop Loss level is automatically updated in case the market moves favorably.
Example: The price is 100 and I open a buying position with a Stop Loss at 90. If the price moves to 105, the Stop Loss will automatically rise to 95. Again, if it moved up to 200, the Stop Loss would move up to 190. This means that if the market moves in favor for a long time, the Stop Loss would “save” all the profits made up to that moment.
Guaranteed Stop is an automatic trading feature that Plus500 only activates for a portion of its assets.
This, in fact, is designed as an “insurance” for the user who is penalized by a very sudden and strong change in rates. The Guaranteed Stop, however, requires an extra spread (an additional cost for opening a position).
Purchase order at a certain rate (pre-order)
Another important automatic order tool offered by Plus500 is the “buy/sell only if the rate is” type order.
With this function, you can order the platform to open a position of buy (up) or sell (down) only when the quote reaches a certain level.
Example: The current price is 100, but I only requested to open a buy or sell position only when it reaches 110.
Changing an Ongoing Automatic Order
In the lesson on how to change an order in progress in our guide to Plus500, we learned how you can easily change an automated order even though it has already been activated. This can be done for all order types except for an operational order.