Spread Betting Accounts - Trade with Limited Risk at City Index

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City Index

10 Apr, 2012, 07:00 GMT

LONDON, April 10, 2012 /PRNewswire/ --

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: http://www.cityindex.co.uk/learn-to-trade/limited-risk-accounts.aspx

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.

Key features of a Guaranteed Stop Loss Order: 

  • Amendments can be made without additional charges (trading hours only)
  • Order levels must be placed a minimum distance above and below the current 'Our Price' (5% pm UK100 equities).
  • GSLOs are not available on all our markets.

Note: There is a small charge for this service.

Guaranteed Stop Loss Orders are a fantastic risk management tool for when trading volatile markets and those that are prone to gapping.

Summary

Spread betting with City Index is an ideal choice for new traders who are looking to trade with limited risk. The Limited Risk Account offers peace of mind in that every trade you place has a Guaranteed Stop Loss Order applied, limiting your potential losses.

Remember, as a leveraged product, spread betting 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 in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, CFD trading and, in the UK, financial spread betting.