Risk management is important in any successful long term trading strategy no matter which asset you decide to trade.
Because both CFDs and spread betting are leveraged products, protecting yourself from excess market volatility and determining a risk appetite that is acceptable to you is an important first step to consider when you place your first Forex trade.
Which tools can I use to manage my risk when trading Forex?
Stop Loss Orders
You can place a Stop Loss directly from the trade ticket in TraderPro. Simply select the option and fill in the price at which you would like your position to be automatically closed out.
If the market moves through your selected price point, your position will be closed out. You won’t need to take any action so you can trade with greater peace of mind. Stop Losses give you added protection should market volatility spike and the market moves against you.
Remember Stop Losses protect you from market movement against your position but do not guarantee to protect you against sudden, excessive market volatility and market gapping.
Guaranteed Stop Loss Order
A Guaranteed Stop Loss Order is the most powerful risk management tool we offer and is guaranteed to be triggered at the precise level you have specified, irrespective of market gapping or volatility. We offer free Guaranteed Stops* on a number of our most popular Forex markets including majors like EUR/USD and GBP/USD. We also offer free Guaranteed Stop Loss Orders on a huge range of global markets including:
- Germany 30
- Wall Street
- UK 100
- SP 500
- US Tech 100
- Brent Crude
You can set your free Guaranteed Stop during these selected times.
Trailing Stops allow you to “track” market movement by a setting price point above or below market value at which you’d like your position to be closed out. Your Trailing stop will then move with the prevailing market trend, allowing you to lock in profits as well as minimise losses should the market move against you.
*Free Guaranteed Stops are only free at certain times, on some markets for retail clients only - click here
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