Excerpt from: Understanding Spread Betting
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| August 15, 2007 | | Limiting losses on spread bets | When placing spread bets, it is important to realize that sometimes you will be wrong, and this will result in a loss. The key in these cases is to employ a stop loss order in your spread betting strategy so that you limit your losses.
A stop loss order is what it sounds like. You make a request of the indexation company to automatically exit your position when it gets to a certain point of loss. This can help you limit your losses on spread bets to something that is more manageable for your pocketbook.
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