Excerpt from: Understanding Spread Betting
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| November 29, 2006 | | Leverage can maximise with spread betting profits--or losses | | One of the main features of financial spread betting is leverage. Leverage means that you use a small stake when placing your spread bet and the margin, or leverage, used by the indexation company, allows you to make more money. It allows you to magnify your earnings from spread betting. On the other hand, though, leverage can also mean that you magnify your losses. It is important to place a stop loss order when placing your spread bet so as to limit the damage if you are wrong. | | |
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