Excerpt from: Understanding Spread Betting
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| May 15, 2007 | | Remember to place a stop loss order on your spread bet | When you place a spread bet, you should also remember to place a stop loss order. A stop loss order is when you let the indexation company know that when a financial instrument reaches a certain level, you want to automatically exit the position and take your losses.
This strategy can help you limit your spread betting losses, since you won't lose even more money if the instrument continues moving down. It is important to note that the indexation company can't guarantee that the stop loss order will go through at exactly that price, but it is normally very close to what you asked for.
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