Excerpt from:  Understanding Spread Betting
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February 22, 2007

The Volatility of Spread Betting

Spread betting is risky
Even though it is possible to make money by placing successful spread bets, it is important to realize that you can also lose money. Financial markets are volatile, and that means that spread betting on them is risky.

When placing spread bets, make sure that you carefully consider what you are doing, and bet only what you can afford to lose. A stop loss order can help you limit your spread betting losses.

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