Excerpt from: Understanding Spread Betting
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| June 14, 2007 | | Figuring loss into your spread betting plan | Placing spread bets is a gamble. You are literally wagering on the outcome in some financial market or another, or betting on the possible outcomes of financial trades. This means that at some point you will lose in spread betting. It is the nature of making a wager.
This is why it is important when placing spread bets to consider what you can afford to lose. Only wager what you can afford to lose, ensuring that if you are wrong, you won't be ruined. You can help keep your losses to your preferred level by using a stop loss order.
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