Risk Management Tools
Our risk management tools offer a range of order types and other protection methods against adverse market moves. These options let you trade CFDs without assuming a potentially open-ended liability.
We offer two categories of risk protection. Guaranteed orders incur a one-off extra charge, in effect an insurance premium. We also have a full range of non-guaranteed orders, which are available free of charge on most transactions.
Remember that even with risk protection, trading CFDs carries a high level of risk to your capital, which may not be suitable for everyone. Please ensure you fully understand the risks involved.
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 Guaranteed Stops
Guaranteed Stops offer the strongest protection in cases where the market moves sharply against you. Guaranteed Stops put an absolute limit on your liability in the event of a violent market movement, without restricting your profit potential. When you place a Guaranteed Stop you set a maximum/minimum exit price for your trade. Your position will be closed at exactly your selected level should the market move against you, even if there is a very sharp overnight move.
In most cases the premium for setting a Guaranteed Stop is just 0.3% of the underlying transaction value. However, Limited Risk protection is not available on all markets and the size of the position on which we may be able to offer this facility may be limited. We will be happy to advise you of the facilities available for any particular product.
The margin requirement for a Limited Risk trade is equal to the amount which would be lost if your Guaranteed Stop were triggered, plus 10% to cover any interest or dividend adjustments. |
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TRAILING STOPS
Trailing Stops are part of our range of non-guaranteed orders, and allow you to track profitable positions automatically.
This new type of Stop order means you do not have to manually monitor your stops and move them constantly. Instead, the Stop automatically trails the underlying market, should it move in your favour.
You set the conditions for the Stop to move, including the distance from your opening level, and the 'Step' size - the size of the increments by which the Stop can move. Trailing Stops can be used on long or short trades, helping you to secure you gains as the market moves.
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