diff --git a/doc/articles/plugins.md b/doc/articles/plugins.md
index 9da3badad..367c74c83 100644
--- a/doc/articles/plugins.md
+++ b/doc/articles/plugins.md
@@ -16,7 +16,7 @@ specific logic.
 
 ## Creating a Plugin
 
-A plugin is a regular composer package which ships its code as part of the
+A plugin is a regular Composer package which ships its code as part of the
 package and may also depend on further packages.
 
 ### Plugin Package
@@ -24,23 +24,36 @@ package and may also depend on further packages.
 The package file is the same as any other package file but with the following
 requirements:
 
-1. the [type][1] attribute must be `composer-plugin`.
-2. the [extra][2] attribute must contain an element `class` defining the
+1. The [type][1] attribute must be `composer-plugin`.
+2. The [extra][2] attribute must contain an element `class` defining the
    class name of the plugin (including namespace). If a package contains
-   multiple plugins this can be array of class names.
+   multiple plugins, this can be array of class names.
+3. You must require the special package called `composer-plugin-api`
+   to define which Plugin API versions your plugin is compatible with.
 
-Additionally you must require the special package called `composer-plugin-api`
-to define which composer API versions your plugin is compatible with. The
-current composer plugin API version is 1.0.0.
+The required version of the `composer-plugin-api` follows the same [rules][7]
+as a normal package's, except for the `1.0`, `1.0.0` and `1.0.0.0` _exact_ 
+values. In only these three cases, Composer will assume your plugin 
+actually meant `^1.0` instead. This was introduced to maintain BC with 
+the old style of declaring the Plugin API version.  
+  
+In other words, `"require": { "composer-plugin-api": "1.0.0" }` means
+`"require": { "composer-plugin-api": "^1.0" }`.
 
-For example
+The current composer plugin API version is 1.0.0.
+
+An example of a valid plugin `composer.json` file (with the autoloading 
+part omitted):
 
 ```json
 {
     "name": "my/plugin-package",
     "type": "composer-plugin",
     "require": {
-        "composer-plugin-api": "1.0.0"
+        "composer-plugin-api": "~1.0"
+    },
+    "extra": {
+        "class": "My\\Plugin"
     }
 }
 ```
@@ -149,3 +162,4 @@ local project plugins are loaded.
 [4]: https://github.com/composer/composer/blob/master/src/Composer/Composer.php
 [5]: https://github.com/composer/composer/blob/master/src/Composer/IO/IOInterface.php
 [6]: https://github.com/composer/composer/blob/master/src/Composer/EventDispatcher/EventSubscriberInterface.php
+[7]: ../01-basic-usage.md#package-versions