Managing your Risk

It is imperative to manage your risk when spread betting in order to limit your potential losses.

Follow our three-step guide below to limiting your risk when spread betting the global financial markets.

Three Steps to Limiting your Risk

Step 1: Analyse your Market

Before placing a trade, you must fully analyse your chosen market using economic and technical analysis as well as be aware of any data or earnings reports that may influence pricing.

Tip: Refer to our Market Analysis section to find out more about how to do this.

Step 2: Plan your Trade

Experienced traders know that before placing any trade, you should create a solid trading plan - or strategy.

Use the information gathered through analysing the markets in Step 1 to create your spread betting strategy and plan your trades.

By keeping to your strategy and planning your trades through thorough analysis, you limit the risk of emotions taking over during volatile market movements and leaving trades to run.

Step 3: Orders

Within your spread betting plan, you will outline where you are willing to take both profits and losses.

Using your plan, you can implement ‘orders’ on your trade.

An order will automatically close out your trade when the market reaches a predetermined level set by you – either when running a loss or a profit.