April 10, 2012
Spread betting is the act of speculating on a market's price movement. Through
spread betting provider City Index
, you can trade on over 12,000 markets, including indices, shares, currencies and commodities.
Whilst there are many benefits to spread betting, it also presents significant risk; its margin feature means you pay an initial deposit which is only a small percentage of the full value of your position, allowing both easy access to the financial markets and the potential to significantly profit from an initial capital outlay.
However, should the market move against you, you can incur losses greater than your initial deposit.
With this in mind, it is important for new traders to educate themselves, build a comprehensive trading strategy and fully understand the risks before placing a trade.
Limited Risk Account
Through City Index, spread bettors can choose a Limited Risk Account.
A Limited Risk Account is a great way to manage your spread betting risks as every position you place has a Guaranteed Stop Loss Order (GSLO) attached to it - more on this below.
Ultimately, a GSLO means that you cannot lose any more than the funds you deposit.
Other key features of the City Index Limited Risk Account include:
- Ability to place your GSLO just 5% away on UK100 equities
- Access the same spreads as a standard spread betting account
- GSLO charges are shown separately on your account, not hidden in the spread
- No margin closeout level to monitor
- Access 12,000+ markets
Find out more about spread betting with a Limit Risk Account here:
Guaranteed Stop Loss Order
A Guaranteed Stop Loss Order (GSLO) can be used to ensure that the level at which an order will be executed is the exact level that's been specified by the trader, regardless of any gapping in the market.