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.
A standard stop loss will protect you against any losses that would have incurred past your predetermined price point, however they do not protect against excessive market volatility or market gapping.
Guaranteed Stop Loss Order
For the strongest possible risk protection, a Guaranteed Stop Loss is the best choice. Guaranteed Stops work in a similar way to standard stop loss orders, however they will close your position automatically at the price you have chosen, regardless of market gapping or volatility. You will always be closed out at the exact price you specify.
Guaranteed Stops acts as added protection for your position and allows you to fix your risk so that you can trade with more confidence. A Guaranteed Stop is especially beneficial if you Spread Bet on more volatile markets like Cryptocurrencies, Shares and Commodities. We offer free Guaranteed Stops* on a number of our most popular markets such as:
- Germany 30
- Wall Street
- UK 100
- SP 500
- US Tech 100
- Brent Crude
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.
* Free Guaranteed Stops are only free at certain times, on some markets for retail clients only - click here for more information.