Risk Management in Spread Betting with Limit Orders – City Index

When spread betting, it is important to make sure you gain more than you lose. This may sound obvious, but there is slightly more to it that that, as City Index (http://www.cityindex.co.uk/) Market Strategist Joshua Raymond points out:

“The key to financial spread betting,” states Mr Raymond. “Is making sure your total profits outnumber your losses. When traders take profits too early and run their losses, they are already making life difficult for themselves.”

In spread betting, a trader’s psychology is a key factor in whether they ultimately turn a profit or a loss. Spread bettors literally watch live as their profits or losses evolve with the underlying market, and this can be tough on the emotions. With this in mind, limit orders can be an invaluable way of removing some of the pressure.

Limit orders lock in profits by closing a winning trade once a market passes a trigger value set by you. This means that you are able to automatically cash in your gains if the market moves in the way you expect, helping you to reach your profit targets.

To learn more about risk management in spread betting, visit: http://www.cityindex.co.uk/learn-to-trade/

Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.

About City Index:

Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.

As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, contracts for difference (CFDs) and, in the UK, spread betting.

We constantly look to improve the performance of our platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer service and support. Visit http://www.cityindex.co.uk/ for more information.