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Divit_R
May 30, 2018 11:11 PM

Short Plus500 Stock Short

PLUS500 LIMITED ORD ILS0.01 (DI)LSE

Description

Plus 500 Stock - Short. ( London Stock Exchange listed)

Careful as this is an AIM share and carries a higher risk than normal financial instruments due to low market-cap and (I believe) lower liquidity (more volatility- this is dangerous-)

Why go short?

Because European legislation is lowering down Leveraging capabilities for Traders from 300:1 buying power to 30:1 buying power. (for Plus500 users)
Revenues will be slashed, just wait for the quarterly earnings report that follows the European crackdown on trading brokerages.

Side note: Yes I am aware that Plus500 state they are a market-maker, where the majority of their earnings derive from Spread charges, commission and long-term position holders.. But of course they make money from the uninformed average retail traders, who get destroyed in the markets on a day to day basis.

ALSO, I believe Serious traders would (ideally) move their money over to brokers, exempt from European laws, in order to bypass the leveraging cap + general Margin increases. This directly affects profits for Plus500's investors in a negative manner.

Shorting instruments is dangerous, but good luck anyway.

(Not psychic)
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