Keep us posted Luis on any responses from FSA. It will be interesting to see does FSA regulation actually means anything.
Fun fact: plus500 right on their own help section have this day trading example:
...
At this point, my personal recommendation is for anyone who closes any trades in under 1 day to not trade with Plus500 since that broker hasn't yet fully defined scalping.
Fun fact: plus500 right on their own help section have this day trading example:
Example of Opening a Position:
You signed up and deposited $1000 via credit card
Balance: $1000 (Deposits - Withdraws + P&L of closed positions)
P&L = $0 (total profit and loss of all open positions including daily premiums)
Available Balance: $1000 (Balance + P&L of open positions - Initial Margins)
Equity: $1000 (Balance + P&L of open positions)
8:07pm - you press ‘Buy’ Oil which is trading at $60 a barrel:
Your criteria are:
No of Barrels: 100
Close at Profit Rate: $64
Close at Loss Rate: $55
The total amount you bought is: 100*$60.00 = $6000
The Initial Margin that is needed for Oil is 10%: $600
The Maintenance Margin that is needed to maintain the Oil position is 5%: $300
Balance: $1000
P&L = 0. (Usually the spread of oil is 5 cents so you would have a P&L of -$5)
'Available Balance' after you bought oil is: $400 ($1000 - 10%*$6000 = $400)
'Equity': $1000 ($1000 + $0)
9:05pm - Oil jumps to $64.
Balance: $1000
P&L: +$400 (100*$64-100*$60)
Available Balance: $800 ($1000 - 10%*$6000 + $400 = $800)
Equity: $1400 ($1000 + $400)
9:15pm - Oil jumps to $66 - before your take-profit executes.
Balance: $1000
P&L: +$600 (100*$66-100*$60)
Available Balance: $1000 ($1000 - 10%*$6000 + $600 = $1000)
Equity: $1600 ($1000 + $600)
9:15pm - your 'Take Profit' order executes and the position is closed. You made $600 on the deal.
Balance: $1600
P&L: 0 (no open positions)
Available Balance: $1600
Equity: $1600