In this article we’ll explain how to trade Amazon shares on Plus500 using CFDs.
Below we will show you how to invest in stocks with Plus500, one of the largest internationally recognized brokers, which allows you to trade on the stock exchange from the comfort of your home or mobile device.
All this in a safe, transparent and only with the use of an internet connection.
Trading: CFDs on which shares with Plus500?
Plus500 offers one of the widest choices of equity CFDs on the market.
In fact, there are more than 1000 stocks, including all the most important, listed on the main stock markets in the world.
For example, we highlight the presence of over 1000 shares listed on Wall Street (New York Stock Exchange) and as many in other European and global stock exchange indices (Milan, Paris, London, Frankfurt, Madrid, Singapore, Tokyo and many others).
In addition, on Plus500 you will have the opportunity to trade on some securities not present on many platforms, such as Amazon shares.
On the Plus500 website you will find a wider range simply by accessing the dedicated section of the website, where you can consult the more than 2000 securities available.
If you need instructions, please read our complete Plus500 Guide.
How to trade stocks on Plus500
Trading Amazon securities on Plus500 with CFDs will be simple and intuitive even for those who execute such transactions for the first time.
There will be no problem in finding the stocks you want to trade, all thanks to the clear and effective graphics and well organized setting that can boast the platform.
In fact, if, for example, we wanted to find the Amazon shares on Plus500 (remember that it is CFDs on shares) will suffice:
- Enter the screen “Trade”
- Scroll and find “Shares” category
- Select the the Amazon Shares in the sub-category AL-AM among the USA shares
So the trader can decide whether to buy or sell securities (open a upward or downward position), deciding independently how to play on the stock exchange on the platform.
What does it mean to buy an Amazon stock on Plus500?
Buying an Amazon share on Plus500 means opening a Long position by buying a “Buy” type CFD. As a CFD broker, Plus500 represents all securities available with equity CFDs.
When a trader buys an Amazon CFD stock on Plus500, he is trading on the value of the Amazon stock listed on the stock exchange.
The CFD reproduces the trend of the stock, so as soon as you have chosen to open a Buy position, i.e. you have made a purchase of Amazon shares, you will obtain revenues corresponding to the increases of the Amazon stock itself.
What does it mean to sell Amazon shares on Plus500?
Selling a share on Plus500 means opening a short position by buying a “Sell” type CFD. As explained above, Plus500 is a CFD broker, so the available stocks are equity CFDs.
At the time a trader sells an Amazon CFD shares on Plus500, he is trading on the value of the Amazon stock listed on the stock exchange.
The CFD reproduces the trend of the stock, so as soon as you have chosen to open a Sell position, i.e. you have made a sale of the Amazon shares, you will get revenues corresponding to the drops of the Amazon share itself.
How to finalize a trading of Amazon securities on Plus500
As soon as you have decided how to act in the market, by choosing whether to open a position to buy or sell securities on Plus500, you can continue to the finalisation phase.
That is the phase in which you can define the details needed to actually open the position.
Below, we look at the window relating to the details of opening a position to buy Amazon shares on Plus500.
As you can see, there are several points to pay particular attention to:
- Amount: represents the number of Shares you wish to trade on (0.1 in the example)
- After leverage: CFDs are leveraged instruments and therefore allow you to trade on a higher number of shares than the investment required.
- Value: the value of your investment (selected shares amount in the first point x actual value)
- Required Margin: is the actual amount of investment based on the leverage applied, ie how much the trader will actually have to invest to open the position (you can see that with CFDs you can invest a lot less than with a traditional investment).
- Close at profit: it’s the take profit order. By checking this box, you can set a level of profit taking, at which point the position closes automatically.
- Close at Loss: By checking this box, you can set a maximum loss level at which the position is automatically closed.
- Guaranteed Close: This option is not available for all instruments, and is used to close the position in case of very strong price changes. Requires an additional spread.
- Buy/Sell: with this button you can proceed to the execution of the order, confirming all the previous choices.
We have seen that to open a position you simply have to click on the button present in the window of the finalization of the order.
When the trader wants to close his position, because he is happy with the proceeds or because he prefers not to keep it open (because he is making a loss, because he does not trust the stock, etc..), simply click on “Close position”.
It is important to remember that to close the position simply “Close”. It may happen that those who are not practical, instead of closing their position, open an opposite one (for example opening a position Sell with the intention of closing a position Buy). It is recommended to avoid this procedure because it is wrong.
For a complete tutorial we refer you to our definitive guide to CFD trading.