Plus500 Share Discussion Threads

[sailing john] 06/12/2016 09:43

btw - I'm not a day trader - I'm an investor but sometimes opportunities are gifted with little risk in a stock I know well.

[sailing john] 06/12/2016 09:39

Out again at 376 +16%
Stalling - hope to be back in again later
edit - no problem selling volume (easier than my purchase that I had to split) so buyers in market at this price
SJ

[dennislevine] 06/12/2016 09:32

Rating only relevant if you can reasonably forecast what earnings & cashflow are likely to be - I doubt the companies themselves can figure out yet what impact this will have.

[nurdin] 06/12/2016 09:31

Dennis,thank you for that,perhaps I should have added (as I intended to) 'and a cap on the leverage level' .

I stand to be convinced that this will be disasterous for the industry however.

[rhatton] 06/12/2016 09:29

Plus is rated lower than IG (though past reasons for that perhaps) so perhaps IG has further to fall

[dennislevine] 06/12/2016 09:29

According to Plus500 website they offer leverage of 1:294 on certain indices and FX pairs.

In my view the Founders could see the way the industry was developing from a regulatory perspective - hence the consistent sale of shares since the IPO.

[larva] 06/12/2016 09:26

wait till they cant get any customers interested and have to warn on profits you will be picking these at 100p

[sailing john] 06/12/2016 09:24

Interestingly Plus now the lowest faller of the 3

PLUS -26% in from -35% at the open
IGG -27.5% out from -22% at the open
CMCX - 28.7% out from -26% at the open

[bulltradept] 06/12/2016 09:24

How is it IGG is now getting hammered worse than plus? More profits to lose I suppose..

[lydnem] 06/12/2016 09:20

I dont think it will be a big issue to the likes of IG. They dont offer big sign up bonuses

[lydnem] 06/12/2016 09:19

jambo

In my view it is.

PLUS rely on a big turnover of new mug punters as they lose a lot who get sick of losing or run out of money. This will have a dramatic effect on bringing in new punters.

[danboris2] 06/12/2016 09:18

Actually I believe PLUS only offers leverage of max 50:1 so this rule change shouldn't impact too much. Although the industry will be tougher this may work in PLUS's favour as it will be far harder for new entrants. For all the problems of last year, from a regulatory perspective PLUS is in decent shape. Not all doom and gloom I think. Would be helpful to get a statement from the company of their view.

[leedskier] 06/12/2016 09:13

The FT article is worth reading in full. Leverage and introductory bonuses are being targeted too.

[alphabeta4] 06/12/2016 09:12

The statement in full. No position here but I've been monitoring out of curiousity as I have a cynicism around PLUS but shorting isn't my thing. Good luck to holders but IMO I'd be careful.

[dennislevine] 06/12/2016 09:11

Nurdin. There is a 62 page document out this morning also from the FCA. Leverage caps will have a material impact on industry profitability and future growth rates e.g. CMC Markets offers 500:1 on major indices, FCA proposing to cap this at 40:1 or 20:1 depending on whether a client is categorised as experienced or not

[rhatton] 06/12/2016 09:11

Nurdin. I agree with you. There probably will be some impact but not one to justify a 35% mark down on open. But that creates a great opportunity. Even if back to 450 by results in Feb or march then that is a great return from a simple gift.

[lydnem] 06/12/2016 09:02

PLUS was the most obvious one. The model of PLUS is to reel in mug punters who lose an average of 1500 pounds. They dont hedge until exposure reaches $40m, they want you to lose.

IG is different, and not comparable to PLUS

[dennislevine] 06/12/2016 08:54

Regulators (now including the FCA) are killing the industry - it is clear they do no want retail clients to lose money via leveraged online (captive) trading platforms.

Makes Plus500, CMC Markets and IG Group all uninvestable.

[leedskier] 06/12/2016 08:53

Well overdue!