One of the best ways to make money with ripple is to do it through trading using an online CFD broker. In this post we will show you how to negotiate with Ripple (XRP) with Plus500 (CFD Service), one of the best online brokers of CFDs and probably the one that offers the platform of trading more intuitive and simple to handle. Plus500 becomes the first forex broker to be offering Ripple CFD on its electronic trading platform alongside with Bitcoin, Litecoin, Ethereum and Dash.`
This UK-based forex company has been in this industry since 1999, thus, they have been very experienced in providing quality services to many traders. The fact that Plus500 utilizes a single platform has become one of their strongest points. It is quite common that many forex traders have some issues in using multi-trading platforms offered by other online forex brokers. Plus500 has ceased this issue and introduced a single platform instead. With this particular platform, every new user will find it very easy to understand and comprehend.
What is CFD ?
A CFD, is an contract between two parties to change the difference relating to the opening price along with closing price of the contract. CFDs are derivatives products that allow you to trade on live market price movements without actually owning the underlying instrument on what your contract is reliant. CFD trading permits you to go long (buy) in the event you believe market price ranges will rise, or go short (sell) in the event you believe market price ranges will fall.
You can use CFDs to speculate on the upcoming movement of market prices irrespective of whether the underlying marketplaces are rising or maybe falling. You can easily go short (sell), permitting you to profit from plummeting prices, or hedge ones portfolio to canceled out any potential damage in value of the physical investments.
CFDs are generally leveraged products, enabling you to help trade by paying just a part of the total value with the contract. This means you can potentially magnify your return on investment. Remember, however, that higher leverage can result in losses that could possibly exceed your preliminary deposit. If you are new to CFD and still confused about the basic terms of CFD trading then check our previous post to Learn The Basics Of CFD Trading.
How To Trade Ripple CFD With Plus500
Step One : Register for an account on Plus500.com
Before trading, you’ll need to create a Plus500 account (Click Here). On the homepage, click “Start Trading” in the navigation menu near the top of the page. This will bring up a page that asks you to Download or using Web Trader. Or you can also direct download the trading client (Click Here).
The next page will be the login page for accessing your account after registration. First, click “New User” and enter your email address, desired username, and password.
Step 2 : Verify your account
Plus500 will send a verification link to your email address. Open your mail and click this link to verify your email address.
After this, you be asked for a phone number to verify. If you enter a mobile number, you’ll be sent a verification number by text message. If it’s a landline, the computer will phone you and tell you the number. Enter this code in box.
Step 3 : Place XRP/USD trade
When signed in, you can simply click the “Forex” link in the left navigation menu. On the page that opens, click on the link “Virtual” which will bring up a screen with all of the Virtual Forex pairs than can be traded at Plus500. Where you will see Ripple Daily, click on your desired pair to bring up the price info, charts, and trading screen.
Note: Keep in mind the expiry date for trades, which is the date and time that positions will automatically be closed due to the nature of contracts for difference.. XRP/USD positions are closed automatically closed at 5:30 AM each day.
Step 4 : Place an order
After some due diligence, you should feel prepared to start trading. After choosing XRP/USD, you will be brought to a screen that shows the price at which you can buy or sell the CFD; with a difference of about 2% between them. Underneath the prices is valuable information you should familiarize yourself with and keep in mind when considering whether or not to place a trade.
In easy words : If you think price will go down, place your bet on falling price and Click on the “Short” button to enter the details of your trade. If you think price will go up, click on “Buy” button and enter the details of your trade. So if you believe that a company or market can experience a decrease in value at any given time, you can use CFDs to promote it today, and your earnings will rise in accordance with any fall as price. However, should the market moves versus you, your losses may also increase. CFDs are for that reason a flexible substitute for trading the moves of market price ranges as they let you benefit from just about any move, regardless of if the markets are growing or falling.
You will be given the opportunity on this page to set either a market or limit order, set a profit-take and stop-loss price, and to allocate the amount of leverage you will use in the trade. In a market order, you agree to buy or sell at the current market price while a limit order allows you set a price that you are willing to buy or sell at and, if the market ever reaches it, your order will be executed. Profit-take and stop-loss prices are basically exactly as they sound: prices that close your trade if they reach a certain level of profit or loss to protect your from losing your gains or furthering your losses.
As you can see the above screenshot, Here i placed 5000 Ripple buy order when current price was $0.2890, i also put a stop profit @ $0.3050 and stop loss @ $0.2750, now if Ripple price crosses $0.3050 level i’ll get €71.46 in profit, just in case market react opposite and price go downwards, my stop loss will be active and automatically cancels my order @ $0.2750 with a total loss of €62.54.
The most important parameters are:
- Stop loss : the stop loss you need to avoid losing more money than you are willing to risk for a trading operation. Set a stop loss allows you to stop investing to a certain quota, this in a completely automatic.
- Stop limit : the stop limit is a limit to profits, that is, choose a share in profit where your trade should close automatically. This should be done only when you already know that, with a good chance, the asset does not push above this level, otherwise it is always best a stop-loss variable.
- Spread betting : is a leveraged product, so that you only have to deposit a small percentage of the full value on the spread bet so that you can open a location. This is referred to as ‘trading on margin’. While trading on margin lets you magnify your profits, losses will furthermore be magnified as they derive from the full value on the position. As for example, we bought 5000 contracts of ripple (1 contract is 1 XRP) valued at $1445 but we just need $289 in Plus500 account to execute the trade.
Warning : ‘Your capital is at risk’ While we all hope that we’re going to profit from every trade, it just won’t happen. Always remember that by trading CFDs customers can lose all the funds deposited. Please be aware of the risks involved. Plus500 is suitable for experienced traders and not for beginners. If you are newbie then you can try first with demo money too.
Plus500UK Ltd is authorised and regulated by the Financial Conduct Authority (FRN 509909).