Everybody who trades stocks using spread bets on margin should use a stop loss tool. A stop loss order works by cutting your spreadbet off at a pre-determined point that you define when you initiate the trade. A stop loss allows you to protect yourself from potential losses and allows you calculate the amount of loss you are willing to accept on any trade. Spread betting allows you to lock in profit at the price point that you want the trades to close. To lock in more profit, adjust the stop loss level as your stock gains profit. The stop loss will be executed and closed when the share starts to track back (up or down, depending on how you trade). For example, if PV Crystalox Solar plc (London) stock is trading at 70p and you place a long spread wager on it, the stop loss order is at 65p. If PVCS falls in value, the bet will be closed at 65p. When protecting your trade with a stop loss order, you will sometimes be stopped out a little away than the exact point you set it at, therefore resulting in either a little less profit or slightly bigger loss. This is because a stop loss takes a few seconds to close out the trade, by the time this process has completed and depending on how volatile the trade is, then you will be closed out near the actual stop. Syair Hk A stop loss can be useful for limiting losses but it is not foolproof. Let's suppose PV Crystalox solar plc (PVCS London) issued a surprise profit warning, and the share price fell instantly from 70p to just 58p in one sweep. The stop loss here would be broken and your spreadbet would be closed at 58p rather than 65p because the stock never traded at 65p. To protect against this occurrence spread betting providers offer a solution in the form of a 'guaranteed' stop loss for an additional small premium. A guaranteed stop loss order can be used to ensure that spread betting trades are stopped at a specific point. This is fundamentally the same as a stop loss order, except you will be closed out at the point you requested, no matter how volatile the stock is. This fee varies from broker to broker. Most common is a change to the initial spread. This can mean adding a few more points either side, or charging a percentile fees. These fees are based on trade type and trade value. They are taken from your account margin. https://georgiacompetitiveness.org/loose-tournament-strategy-3-tips-how-to-steamroll-the-competition/ The amount of risk you are willing and able to take depends on your tolerance for it. However, in highly volatile markets like these, a guaranteed stop-loss order can be a great idea.
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