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Financial Spreads - Limited Risk Account |
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UK spread betting company, Financial Spreads, has launched a new limited risk spread betting account.
The new account is designed to help investors by placing a Guaranteed Stop Order on every new position. A Guaranteed Stop Order puts an absolute limit on how much an investor can lose on a trade without putting a limit on the potential profit.
Limited Risk Account
According to Adam Jepsen, spokesman for Financial Spreads, the new Limited Risk Account is ideal for both investors who are new to financial spread betting and those wanting a little extra safety net when trading.
“Risk management is important, particularly in the current volatile markets. The Limited Risk Account helps to minimise the risk of trading. Every time a client opens a new position a Guaranteed Stop Order is attached and therefore, should the market move against the client the trade is guaranteed to close at a pre-specified level. This safety net should help a range of investors”.
“We take risk management seriously so even the Standard Financial Spreads Account automatically adds a Stop Loss to every new position, although these are not guaranteed. The markets can, on occasion, jump straight through Stop Loss level, this is known as ‘gapping’. If that happens and the market gaps, a Stop Loss will close a spread bet at the next best traded level.
“A Guaranteed Stop Order is essentially a form of insurance against market gaps and they come at a small cost. When a client has gained some experience with the Limited Risk Account, they can upgrade to a Standard Account where Guaranteed Stop Orders are not mandatory but can still be added to trades,” concluded Jepsen.
Financial Spreads - The Risks
It’s important to note:
- Before trading, be aware that spread betting is leveraged and therefore carries a high level of risk to your funds.
- Spread betting may not be suitable for all investors.
- It is possible to lose more than your initial investment and therefore you should only speculate with funds that you can afford to lose.
- Ensure you fully understand the risks and, where necessary, seek independent financial advice.
Financial Spreads Account
The financial spread betting company offers investors access to a wide range of global markets including spread betting on shares, forex, stock market indices, commodities, interest rates and bonds. The service is commission-free and there are no brokers’ fees. For more details see the Financial Spreads review.
Financial Spreads clients can trade via FinancialSpreads.com and over the phone. Popular markets such as the FTSE 100, EUR/USD, gold and crude oil can be traded 24 hours a day, 5 days a week.
Financial Spreads Account:
With financial spread betting you can lose more than your original stake or investment. Spread betting carries a high level of risk to your capital. Please familiarise yourself with the risks that are involved and before trading, ensure that financial spread betting matches your investment objectives. Seek independent advice where necessary.
Content approved by / supplied by Financial Spreads which is a trading name of London Capital Group Ltd (LCG). LCG is a company registered in England and Wales under registered number: 3218125. London Capital Group Ltd, a wholly owned trading subsidiary of LCGH plc, is regulated and authorised by the Financial Services Authority. It has a European passport and is a member of the London Stock Exchange.
Financial Spreads - Limited Risk Account - edited by MJ, 11 May 2012.
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With spread betting you can lose more than your original stake or investment. Spread betting carries a high level of risk to your capital so please familiarise yourself with the risks that are involved and, before trading, ensure that spread betting matches your investment objectives. Seek independent advice where necessary.
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* Based on current UK tax law. Tax law may change and can differ depending on your personal circumstances.
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