Because Spread Betting is a leveraged trading product, it is important that you manage your risk responsibly when trading. When you trade with ETX we give you a number of tools to help ensure that you trade with a level of risk that you are comfortable with. Our guide below shows you the tools available to help protect yourself against excess market movements.
What risk management tools can I use when Spread Betting?
Stop Loss Orders
A Stop Loss Order allows you to choose the exact amount in points or P&L that you are comfortable risking on your trade.
You can add a Stop Loss and define your chosen amount when you first open your trade by selecting the option in the trade ticket. We will then close out your trade when the market price moves through your chosen limit.
Trailing Stops are a powerful tool that allow you to “track” market movement by a setting price point above or below market value at which you’d like your position to be closed out.
Your Trailing stop will then move with the prevailing market trend, allowing you to lock in profits as well as minimise losses should the market move against you.