Plus500: trading economics ?

[Ribenapigeon]

I've been playing around with the Plus500 CFDs demo mode. Its interesting and a bit mind boggling, I'm wondering though, how much money would you have to be playing with in CFDs to earn £10 to £20 per hour if you spent forty hours a week trading? Obviously if you knew what you were doing

[Polarbear]

It's just another form of gambling isn't it, OK if you know what you are doing (which I don't). I presume you can make a profit but to live on surely that would take serious sums of money to risk?
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Triumph Trophy Launch Edition

[Ribenapigeon]

It is gambling but a hell of a lot more interesting than horses or footballers. Trading is done minute by minute though so over an hour you could do dozens of trades each time levering money out.

[Matt B]

And you fully understand the risk involved with trading a CFD as opposed to traditional shares?
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stinkwheel: He had an animated .gif of a cat performing fellatio. It's not socially acceptable. It can have real life adverse effects on other people.

[Ribenapigeon]

[Azoth]

You can only make real money by trading using leverage. However, when you're exposed beyond what you've deposited, and the direction of the market is against you, the dealer closes the position on your behalf, and this means they foreclose on your deposit. So you can very easily end up with nothing.

These websites use to market intensively, using kids in Pakistan wearing dodgy sunglasses, spreadsheets at the ready, saying they have consistently made money with their trading strategy. I don't believe a word of it.
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Safety in numbers

[duhawkz]

If the leverage works the same way as the FX stuff then if the market change fast enough against you, you can end up owing brokers 10's of thousands of pounds, al a the swiss franc crash.
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"The guy is a worthless cunt and I honestly believe I would be a slightly happier person if he died." - Chris-Red

[Fin]

I played it for a while and you get £20 for signing up, you have to make a certain amount of trades before you can withdraw your original £20 deposit, I didn't play the demo/practise mode for long and didn't really know what I was doing but managed to get £40 balance and could withdraw £25 to my bank, instead I thought I'd spend a little bit of it on the natural gas. I ended up losing all £40 and going into -£80 or something crazy so they closed my account. I thought I was investing or buying the stocks and that when they go up in value I'd get more money however it's more of a predicting game whether the price will rise or fall.

Definitely worth using your free £20 up though, was good fun for the few days I played. I also didn't like that the trading is only in day time, I liked to play in bed at night.

[Matt B]

[Ribenapigeon]

What im not clear about is if you have your position closed because the share price drops below the lose position then do you lose the difference IE the amount between the price when you bought and the price when the position was closed or do you also lose the whole stake that was put in?

[Matt B]

Unsure on that. I believe you forfeit the entire stake but I'm not 100% and you need to scour their small print (if you can find it).
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stinkwheel: He had an animated .gif of a cat performing fellatio. It's not socially acceptable. It can have real life adverse effects on other people.

[Polarbear]

Sounds like it should be illegal. Money laundering and all that.
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Triumph Trophy Launch Edition

[Ste]

[Ribenapigeon]

[Sun Wukong]

[Matt B]

Buy some shares. It can be a longer term prospect but the risks are lower because you actually own something and can wait the market out if need be.
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stinkwheel: He had an animated .gif of a cat performing fellatio. It's not socially acceptable. It can have real life adverse effects on other people.

[Rob Fzs]

inb4 Joe Campbell style raping
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