Limited Risk Spread Bets
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FinancialSpreads.com have launched a new limited risk spread betting account.
The new Limited Risk account is designed to help investors by adding a Guaranteed Stop on every new trade. That means that every spread bet has a limited risk.
Whilst the Guaranteed Stop puts a limit on how much an investor can lose on a trade it does not put a limit on the potential profit of the trade.
Limited Risk Spread Bets
According to FinancialSpreads.com spokesman, Adam Jepsen, the new Limited Risk spread betting account suits both investors who are new to financial spread betting and those wanting an extra safety net when trading.
“As with all trading, risk management is important, particularly when spread betting in the current volatile markets. The new Financial Spread Limited Risk Account helps clients minimise their risks. Every time clients place a new trade, a Guaranteed Stop is automatically attached to the trade. Therefore, should the market move against the client the trade is guaranteed to close at a pre-specified level. The limited risk spread bet should therefore help a range of investors”.
“FinancialSpreads.com takes risk management seriously so even our standard account automatically adds a Stop Loss to every new trade, although these are not guaranteed.
“The markets can ‘gap’, ie they can jump straight through a Stop Loss level. If that happens a normal Stop Loss will close a losing trade at the next best traded level.
“Guaranteed Stops are a form of insurance against the market gapping and therefore they come at a small cost. When spread bettors have gained some experience with the Limited Risk Account, they can of course upgrade to a Standard Account. With our Standard Account having a Guaranteed Stop on each trade is not mandatory however investors can still add Guaranteed Stops to their trades.
“Having said that, even the Financial Spreads Standard Account comes with automatic Stop Loss orders on every trade” concluded Jepsen.
Risks with Spread Bets
Investors should note that:
- Spread bets are leveraged and therefore carry a high level of risk
- Spread bets may not be suitable for all types of investor
- They can lose more than their initial investment on a spread bet and therefore they should only trade with funds that they can afford to lose
- They need to fully understand the risks and, where necessary, seek independent financial guidance
Limited Risk Spread Bets with Financial Spreads
Financial Spreads offers tight spreads on a wide range of global markets including UK, US and German shares. They also offer forex, indices, commodities and differential spread bets. For further details see the Financial Spreads markets.
All Financial Spreads accounts are commission-free and there are no brokers’ fees.
Popular markets such as the FTSE 100, EUR/USD, gold and crude oil can be traded 24 hours a day, 5 days a week, also see 24 spread bets.
"Limited Risk Spread Bets" last update by R Thomas, 01-May-2012
Warning: Financial spread betting carries a high level of risk. You can lose more than your initial investment or stake. Financial spread betting may not be suitable for all investors. Only trade with money that you can afford to lose. Make sure you fully understand the risk involved. If necessary, seek independent financial advice.
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