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Chapter 9




Peter Read, CEO and Founder of Pelican
Apr 18, 2018


What is Pelican?



Pelican exists to help traders make money
Trading is very risky. The FCA found that 82% of traders lost money. Pelican gives you real-time access to trades, ideas and knowledge by connecting you with thousands of traders from around the world to become part of the other 18%.


What is leveraged trading?



Leverage simply means borrowed funds
It varies per asset, but if a major currency (for example) was leveraged at 50:1, for every £1 you put up, you can trade £50 of that asset. This allows you to trade with greater gains, but, it also comes with greater losses.



What is spread betting?



Speculating on the price movement of an asset

Spread betting means you don't actually own the underlying asset. You simply speculate on whether the asset's price (the market) will rise or fall. Two prices are quoted for this; a Sell (Offer) and a Buy (Bid) price. The spread is the difference.


How do I make money from this?



When the market price goes in your chosen direction

Spread Betting allows investors to speculate on prices falling or rising. This makes it more versatile than simply buying and holding shares. If you think the market will go up, go "long." If, you think the market will go down, go "short."


What can I trade?



A wide range of markets from all over the world

Spread betting companies provide a tradable market price based on the underlying asset, such as Apple’s share price. Spread betting is made up of thousands of markets, for example; Currency pairs, Indices, Commodities.


Risk managment



A stop limits your loss on a position in a market

A stop is effectively insurance against a bad decision and 90% of traders use them. A stop is placed at a worse level than where you open the trade. If the price moves against you and reaches your stop, the trade is closed.





What is a candle chart?



A visual representation of a market’s movement

The grey lines (wicks) represent the highest and the lowest price in the time frame. The height of the coloured bars represent the opening and closing price in that time frame. If the bar is blue then the closing price was higher than opening price at the end of the period. If it’s red, it was lower.


Are there any hidden costs?



Profits on spread betting are tax free

There are no commission costs when you make a trade. However, there is a charge being the difference in price between the Sell (Offer) and Buy (Bid) prices. There will sometimes be a cost for holding a trade overnight.


Summary



Spread betting is a versatile, cost effective tool for GOOD decision makers

If you can make good trading decisions then this is a great tool. If you make bad decisions you will lose money quickly.


How do I trade on Pelican?



I think the US$ will be worth more than the GB£



Let's use this example to start...




 


Tap on “Popular markets”, then find GBP/USD Rolling Daily.


 


Choose a “Sell” direction **, enter a Quantity and a Stop or Limit, then tap “Trade” to confirm.

** Note that because you think the USD will rise, the GBP must fall


Quantity; This is the amount that you want to speculate per point / pip movement of the underlying asset.

Margin; This is the amount of capital required to place the trade.

Stop; The price that will close the trade if the market moves against you.

Limit; Opposite to a stop. The price that will close the trade if the market moves in your favour.





Is my trading going to plan?



Find out on your Positions page

This page shows you all you need to know about your trades and how you’re doing. You have a chronological log of all your open, pending, and closed trades with running P&Ls.

Equity; This is the amount of cash in your account.

Live P/L; This is the value of your open positions.

Balance; This is your equity +/- your Live P&L.

Used margin; This is the amount of capital you have tied up with a trade.

Available margin; This is the amount of capital you have to invest in new trades.





How can I see more of my trade information?



Tap on any trade card to see more detail

This page illustrates the performance of the market since you opened the trade. The blue dotted line denotes the current price of the trade. The other 2 wider dotted lines show the Stop and Limit levels, whilst the black dotted line shows the Entry level. Changes to the trade are illustrated below the graph.





How do I close my trade?



Anywhere there’s a trade card, you can close a trade

Look out for any close icons or close buttons under a trade card or from the expanded view to exit your position. You can also close a trade from your positions by tapping the 3 dots, and selecting “Close”.


Why is communication key?



Traders trade better when they trade together

Institutional trading platforms have in-built communications. We are the first retail trading platform with seamless communications between users. This requires special permissions which makes us unique amongst retail brokers.


 


How do I communicate?



Simply follow traders and join groups

It is easy to find trading strategies in the Discover section. You can either follow a trader and receive their trades into your Feed. Or you can join a public Group and interact with other traders. Scroll down the page to find a trader or enter their name on the Discover page.


 


How do I assess performance?



Dig deep on trader’s profiles

If you see a trader that looks of interest, simply select their avatar. This will load the profile page. You can swipe to show different aspects of trading.

If you like the look of the trader then add them to your feed by selecting the “Follow” button.


  


How do I chat to traders?



All interaction happens on the Activity page

Once you’ve followed someone or joined a group, all communication happens on the Activity page. Your Activity page is split into “My Feed” and “My Groups”. My Feed provides the flow of trades of the traders you are following. My Groups are a list of conversations you are having with other traders.


How do I become a good trader?



To be part of the winning 18% you need a winning strategy

Pelican helps you achieve this by giving you access to experienced traders with a credible transparent track record. You can see their trades, judge their performance, ask questions, understand their strategy and copy their success.


How do I pick a winning strategy?



Consider the following...

The amount of time you have

If you have no time, there is no point in choosing a strategy that requires hours of effort.

Your risk appetite

Again, if you are risk averse do not choose a strategy which produces large swings in profitability.

How consistent is the trader?

Some trading strategies require greater financial resource than others. 





Contact support with any queries or questions, we’d be happy to help

support@pelicantrading.io

020 3475 4516
Mark



Ready, set, go!


Some of the best traders use Pelican. Join a growing list of people who use us as their go-to trading platform.


Try Pelican for free   Learn more
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investors lose money when trading CFDs
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.



Spread betting and CFD trading are leveraged products and as such carry a high level of risk to your capital which can result in losses greater than your initial deposit. These products may not be suitable for all investors. CFDs are not suitable for pension building and income. Ensure you fully understand all risks involved and seek independent advice if necessary.
Pelican Trading is a trading name of London & Eastern LLP. London & Eastern is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 534484. London & Eastern is registered in England & Wales, registered office at 85 Great Portland Street, First Floor, London, W1 W7LT, company number OC345870.
Mark






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