When trading CFDs with Plus500, traders have access to a diverse array of asset classes. These include currency pairs, cryptocurrencies, commodities, shares, indices, Exchange-Traded Funds (ETFs), and options. Here’s a detailed look at each trading asset type available on the platform and how they work.
Forex
What is Forex?
Forex (foreign exchange) is the global marketplace for trading currencies. With an average daily trading volume exceeding $6 trillion, it’s the largest financial market in the world.
Currency Pairs on Plus500
Plus500 offers CFDs on popular currency pairs such as:
- Major Pairs: EUR/USD, GBP/USD, USD/JPY.
- Minor Pairs: EUR/GBP, GBP/AUD.
- Exotic Pairs: USD/TRY, EUR/ZAR.
How Forex CFDs Work
When trading Forex CFDs, you speculate on the price movements of currency pairs. For example:
- EUR/USD: A bet on whether the Euro will strengthen or weaken against the US Dollar.
- GBP/CHF: Speculate on the British Pound against the Swiss Franc.
Traders can open a Buy position if they expect an exchange rate to rise or a Sell position if they anticipate a fall.
Cryptocurrencies
What Are Cryptocurrency CFDs?
Cryptocurrency CFDs allow you to trade digital currencies like Bitcoin without owning the asset. Instead, you speculate on the price movements using your Plus500 account funds.
Available Cryptocurrencies
Plus500 offers CFDs on various cryptocurrencies, including:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Crypto 10 Index
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Why Trade Crypto on Plus500?
- No Wallet Needed: No need for a digital wallet to hold cryptocurrencies.
- Leverage: Trade larger amounts with a smaller initial margin.
Commodities
Understanding Commodity CFDs
Commodities are natural resources or agricultural products that influence financial markets. Plus500 provides CFDs on soft commodities like wheat and hard commodities such as gold and oil.
Popular Commodities on Plus500
- Precious Metals: Gold, Silver.
- Energy: Oil, Natural Gas.
- Agricultural Products: Corn, Wheat.
Why Trade Commodities on Plus500?
Trading commodities via CFDs lets you access standardized futures contracts with smaller margins and position sizes, making it cost-efficient.
Shares
What Are Share CFDs?
Shares represent ownership in a corporation. With Plus500, you can trade CFDs on global stocks without owning the actual asset.
Popular Stocks on Plus500
- Tech Giants: Apple, Tesla, Facebook.
- Global Leaders: Amazon, Google, Microsoft.
Benefits of Share CFDs
- Leverage: Increase your exposure with less capital.
- Flexibility: Trade on rising or falling prices.
Indices
What Are Stock Indices?
A stock index measures the performance of a group of companies. Trading index CFDs allows you to speculate on the overall market sentiment.
Major Indices on Plus500
- FTSE 100: Top 100 companies on the London Stock Exchange.
- NASDAQ 100: Leading US tech companies.
- NIKKEI 225: Japan’s top 225 companies.
Why Trade Indices?
Indices offer a diversified exposure, enabling traders to avoid risks tied to individual companies.
Exchange-Traded Funds (ETFs)
What Are ETFs?
ETFs track the performance of a specific market or sector, offering diversified trading opportunities.
Popular ETFs on Plus500
- SCHH Schwab US REIT: Focused on US real estate companies.
- Energy ETFs: Covering energy commodities and companies.
Advantages of ETF CFDs
- Diversification: Trade multiple assets in one position.
- Low Capital Requirement: Gain broad market exposure with minimal funds.
Options
Understanding Options CFDs
Options CFDs involve speculating on the price movement of an asset (stock, index, or commodity) before its expiration.
Types of Options on Plus500
- Call Options: Bet on rising prices.
- Put Options: Bet on falling prices.
Why Trade Options on Plus500?
Options CFDs offer a way to trade without directly owning the underlying asset, providing flexibility and leverage.
Why Choose Plus500 for Trading?
Plus500’s wide range of tradable assets, combined with a user-friendly platform and competitive leverage options, make it an ideal choice for both beginners and seasoned traders. Whether you’re interested in Forex, cryptocurrencies, or commodities, Plus500 provides the tools to explore global markets efficiently.
Final Thoughts
Trading CFDs on Plus500 gives access to over 2,800 instruments across various asset classes. However, remember that trading with leverage involves substantial risks, and you could lose all invested funds. Always trade responsibly and start with a demo account to build confidence.