Excerpt from: Understanding Spread Betting
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| May 04, 2007 | | Remember that financial markets are volatile | It is important to remember, as you place spread bets, that financial markets are volatile. In most investing, and in spread betting as well, volatility can mean higher profits, due to the increased risk. However, such volatile markets can also lead to large losses.
It is important to hedge spread bets, as well as put stop loss measures, into place when spread betting on any market, but especially on the more volatile markets.
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