By now, you should have learnt what risk management is, what different types there are and also certain strategies that can be adopted in our previous lessons. But how exactly can you implement your risk management strategies with ETX Capital?
Stops and Limits
Stops and limits can be very effective in ensuring trades are closed when a price is falling, so extensive losses aren’t incurred, or profit is taken when a price is rising. As we established in the first lesson of this course, they are crucial tools when it comes to risk management.
Setting stops and limits on our award-winning TraderPro platform is easy. Simply open up a trade ticket, select stop and/or limit and then set at what price level you want them placed at. For a full rundown with step-by-step instructions with images, check out How to Set Stops and Limits.
Trailing stops are dynamic forms of regular stops that can help you to profit while a price is rising and close the position once it begins to fall.
These are very simple to apply to trades. Open up a trade ticket and make sure that ‘Trailing’ is selected instead of ‘Regular’ – regular is the default when ‘Stop’ is selected on the ticket. Set the price levels you want the trailing stop to operate at and then as soon as the position is opened it will be active.
For all our clients, we offer free webinars as part of our award-winning education. Some of these are focussed on risk management itself, so you can get to learn more about stops, limits, hedging and other risk management methods and tools.
There are also webinars on a range of broader trading topics. They are always offered free of charge and signing up to them takes no more than 20 seconds – simply select the webinar on the site and fill in your login details to register. You can also watch webinars back if you miss them.
Watching and being a part of our webinars will help to expand your trading knowledge, no matter how knowledgeable you may already be. The more knowledgeable you become, the better situated you’ll be to make good, well-informed decisions.
We offer a range of markets that can be hedged with TraderPro. The idea of hedging is to open contradictory positions to either protect yourself from loss, protect existing profits or to benefit from short-term gains. Here are just some of the markets where hedging is available:
- UK 100
- UK 100 Future
- SP 500
- UK Tech 100
- Wall Street
- Germany 40
- Brent crude
To place a hedging trade, simply select the intended market that displays ‘Hedge’ in brackets after it and open a trade ticket as usual.