Risk Management Tools
If you are new to spread betting it is possible to make substantial losses as well as substantial profits. Our guaranteed risk protection service enables you to cap your liability without restricting your profit potential.
Controlled Risk
Controlled Risk bets make it possible for you to put an absolute limit on potential losses. You can choose to open your position as a Controlled Risk bet. This means that you specify a level at which you want your bet to be closed, should the market move against you. We then guarantee your position will be closed at this level, even if the price gaps suddenly.
There is an extra charge for this protection, in the form of a Controlled Risk premium, which is added to your opening price. Your position is closed at our standard 'buy' or 'sell' price.
Please note that unlike our non-guaranteed Stops, Controlled Risk bets are not subject to 'slippage', even in volatile markets. Slippage is defined as the difference between your specified stop level and the price at which your order is transacted.
Other ways to limit your risk
We offer a full range of non-guaranteed Stop and Limit Orders to open and close betting positions. These are available both by phone and online, giving you the freedom to control your betting portfolio even while you are away from your desk.
For example, Trailing Stops can help you lock in your profits in volatile markets. These innovative Stops mean you no longer need to watch the market and adjust your Stops constantly: your Stop is moved automatically should the market shift in your favour.
Certain types of bet will also place an absolute limit on your risk. For instance, when you 'buy' a traded option your potential loss is fixed at the outset. Likewise, any Binary bet carries a strictly limited liability while giving you the chance to make high short-term gains.
To find out more about how you can benefit from risk management, take a look at our pre-recorded Seminar Archive table and select the Risk Management Using Stop Orders seminar.
- Related Info
- Risk Warning
- Risk Management Seminar
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