Using the risk management tools on Plus500

Risk is part of trading — but that doesn’t mean you have to leave yourself exposed. On Plus500, you get built-in tools that can protect your trades, reduce emotional decisions, and give you more confidence.

This guide walks you through how to use each risk management tool on Plus500, step by step. Whether you’re new to CFDs or trying to trade more safely, you’ll learn how to set up each tool correctly and when to use it based on real-world trading situations.

Plus500 Risk Tools at a Glance

Here are the main tools you’ll use to manage your risk on Plus500:

• Stop Loss – limits your losses automatically
• Take Profit – locks in your target gains
• Trailing Stop – follows the price upward, protects profits
• Guaranteed Stop – closes your trade at the exact price, even during gaps
• Alerts – notify you when prices hit preset levels
• Margin Monitoring – shows how much buffer you have before auto-close

Each tool helps you stay in control. Let’s walk through how to use them.

How to set a Stop Loss on Plus500

What it does: Closes your position automatically when the price moves against you to a certain point.

How to use it:

1. Open the asset you want to trade
2. Tap “Sell” or “Buy” to open the trade setup window
3. Look for the “Close at Loss” section
4. Enter the price or cash amount you’re willing to risk
5. Confirm the trade

Why it’s essential: It helps prevent a small mistake from becoming a big loss.

How to set a Take Profit

What it does: Closes your trade when it reaches a set profit level.

Steps:

1. Open your trade setup screen
2. In “Close at Profit,” enter the price or profit amount
3. Review your target
4. Execute the trade

When to use: If you want to lock in gains without watching the screen all day.

Bonus tip: Even a 1:2 risk/reward ratio (risking $10 to earn $20) puts you in a strong position over time.

How to use Trailing Stop

What it does: Moves your Stop Loss in the trade’s favor as price rises — but never moves it back if the price drops.

Example:

• You buy gold at $2,000
• You set a Trailing Stop of $10
• Price rises to $2,015 → Stop moves to $2,005
• Price falls to $2,005 → trade closes automatically

How to activate it:

1. Start a new trade
2. Under Stop Loss settings, switch from Fixed to Trailing Stop
3. Set the distance
4. Confirm and place trade

Best for: Trending markets where you want to protect gains but don’t want to exit too soon.

Using Guaranteed Stop

What it does: Closes your trade at the exact price you set — even during sharp drops or weekend gaps.

Key benefit: No slippage. You’ll never get filled at a worse price than planned.

How to set it:

• Only available when opening a trade
• Look for the “GS” icon next to eligible instruments
• In “Close at Loss,” enable the Guaranteed Stop checkbox
• Set your price
• Confirm trade

Important: Guaranteed Stops come with a small extra spread or fee — it’s the cost of extra certainty.

Set alerts to stay informed

What they do: Send you a notification when an asset hits a specific price — but they don’t close trades for you.

How to create an alert:

1. Tap the asset in your watchlist
2. Select “Price Alert” or bell icon
3. Enter the target price
4. Save — you’ll be notified when it’s hit

Use alerts for:

• Entry confirmation
• Manual exit decision points
• Volatility awareness

Monitor margin to avoid auto-closures

Why it matters: If your account balance (equity) drops too close to the required margin, Plus500 may automatically close your positions to protect you from going negative.

Tips to stay safe:

• Check the “Available” margin in your account window
• Avoid using more than 50–70% of your available funds in one position
• Add funds or reduce size if your margin level drops too low

Example: If your position needs $500 margin and your account only has $550, even a small drop can trigger a margin call.

Beginner-friendly risk combos to try

Cautious beginner setup:

• Stop Loss + Take Profit
• Low leverage
• Alerts for awareness

Trend follower setup:

• Stop Loss + Trailing Stop
• Watch for breakouts
• Use wider buffer for SL

News trader setup:

• Guaranteed Stop + Take Profit
• Lower trade size
• Be ready for volatility

Add indicators to strengthen your stop-loss placements

Risk tools are powerful — but placing them randomly can backfire. Use indicators like:

• Moving Averages to guide stop placement outside price zones
• ATR (Average True Range) to calculate realistic stop distances
• RSI or MACD to plan entries and exits more precisely

This way, your risk tools follow logic — not guesswork.

Test each tool in demo mode first

Don’t wait to learn during a live trade. Try this mini challenge:

• Day 1: Use Stop Loss + Take Profit on a trending asset in demo mode
• Day 2: Try a Trailing Stop on a volatile stock
• Day 3: Set a Guaranteed Stop and track how it behaves overnight

Track:

• Where price moved
• When stops activated
• How it felt emotionally

Final Thoughts

Using Plus500’s risk tools isn’t just smart — it’s necessary. These features aren’t there to slow you down. They’re designed to protect your money, reduce stress, and help you trade with purpose.

Start simple. Practice each tool one at a time. Build habits now that will support you later — especially when markets move fast. With the right setup, you’re not just reacting. You’re trading with a plan.

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FAQs

1. What’s the difference between Stop Loss and Guaranteed Stop? Stop Loss closes near your set price, but it might slip during fast markets. Guaranteed Stop always closes at your exact level.

2. Can I change risk settings after I place a trade? Yes, you can adjust Stop Loss and Take Profit anytime before the trade closes.

3. Do all assets allow Guaranteed Stops? No. Only some assets have this option. Look for the GS icon when opening a trade.

4. Is there a fee for Guaranteed Stops? Yes — usually a small added spread or fixed cost per trade. It’s shown before confirmation.

5. What happens if I don’t use any Stop Loss? You risk large losses during sudden moves or gaps. Margin calls can auto-close your trade unexpectedly.

6. Are alerts automatic protection tools? No. Alerts notify you but won’t close your trade. Use them to stay aware — not as a substitute for real stop-losses.

7. Does the Trailing Stop move backward if price drops? No. It only moves forward when price rises. Once it moves up, it stays there.

8. Can I see my margin level in real-time? Yes. Go to your account dashboard and check the “Available” and “Used” margin fields.

9. Should I use all the risk tools at once? Not always. Pick 2–3 that match your trade strategy and focus on mastering those.

10. Do I need to use risk tools if I’m just learning? Absolutely. Using them in demo builds habits that protect you when you go live.