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 The most successful spread
betters are the ones who understand and manage their
risks.
By using the tools available - stop losses and guaranteed stop
losses - you can ensure that you never lose more than you are
prepared to without limiting your profit potential.
Stop loss
A stop loss is an order to close an open position when the
market reaches a predetermined level. Stop losses are used, as the
name suggests, to manage downside risk. The potential loss on a
position is limited by requesting that the trade is closed once the
price has fallen to an agreed level. Once a stop loss order is
triggered your trade will be closed at the next available
price.
Guaranteed stop loss
A guaranteed stop loss offers an additional level of certainty
when managing your downside risk. With a guaranteed stop loss you
pay a small additional premium on the trade to guarantee that the
level at which your order will be executed is the exact level that
you set, regardless of any gapping in the market. Finspreads offers
guaranteed stop losses that are especially useful in volatile
markets when prices can move suddenly and significantly, and may
not hit the exact level that you set your stop loss.
Other order types
We offer a range of other order types to suit your trading
style. Details of our markets can be found in the on-line Market
Information icons on the Trading Platform.
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