F inance
You also need to decide your stake,
which is the amount you’re betting
per point. For every point the market
moves up or down, you’ll win or lose
this amount. So if you BUY £5 per
point and the market rises 5 points,
you’ll make £25.
To open your position you put down
a deposit to cover any potential losses,
known as ‘margin’.
Be careful. While your profit can
increase dramatically if the market
moves substantially in your favour,
so can your loss if the market moves
against you, and you
Be
may lose more than
your initial margin.z
difference between our SELL price
and our BUY price. If you think the
price is going to rise you BUY, or ‘go
long’, and if you think the price is
going to fall you SELL, or ‘go short’.
The ‘spread’ in spread betting is the
difference between our SELL price
and our BUY price. If you think the
price is going to rise you BUY, or ‘go
long’, and if you think the price is
going to fall you SELL, or ‘go short’.
“
PROTECTING
AGAINST
LOSSES
For instance your stop-loss may be
placed 10 points below your BUY
price, ready to close your position if
the price drops more than 10 points.
Stop-loss orders are completely op-
tional, but they can be useful for risk
protection.
Please note that stop-loss orders are
not guaranteed and may be subject
to slippage (positive and negative)
and market gaps in volatile market
conditions.
careful. While your profit
can increase dramatically if the
market moves in your favour,
so can your loss if the market
moves against you.
When you place your
spread bet with Inter-
Trader, you can create a ‘stop-loss’
order to exit the trade automatically
if the price moves a certain amount
against you. As the name suggests,
this order acts as a safety net, stopping
you from making a greater loss.
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