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Financial Spreads Launches Trailing Stops
Financial Spreads has added a new risk management tool, Trailing Stops.
LONDON, ENGLAND, February 21, 2012 /Small Business PR News/ -- Financial Spreads, the UK spread betting company, has added a new risk management tool, Trailing Stops.
When Financial Spreads account holders place a trade, they can now apply a Trailing Stop order to it. A Trailing Stop is an order that helps to manage risk without restricting the potential profit of the trade; it is designed to help investors secure profits as a market moves in their favour.
A normal Stop Loss order is designed to protect an investor when the market moves against their trade. If the market does move against a trade, and across a pre-set level, then the Stop Loss will close the trade and prevent any further losses.
A Trailing Stop order works like a Stop Loss order but automatically adjusts when the market moves in the investor's favour.
According to Adam Jepsen, http://www.financialspreads.com spokesman, the risk management tool will give clients greater flexibility.
"A Trailing Stop order gives added flexibility because it will automatically track a profitable trade so that clients do not have to continuously monitor their position and manually adjust a Stop Order.
"It's also important to note that there are no extra charges for opting for your Stop order to be a Trailing Stop."
While Financial Spreads offer clients a range of risk management tools on the spread betting platform e.g. Trailing Stops, Stop Loss orders, Limits orders and Guaranteed Stop Loss orders, investors should be aware that financial spread betting is a leveraged product and therefore carries a high level of risk.
"With financial spread betting, investors can lose more than their initial deposit so you should ensure this form of trading meets your investment objectives and seek independent financial advice if you do not understand the risks," added Jepsen.
Trailing Stop Example
An investor might speculate on the FTSE 100 to rise and therefore buy GBP5 per point of the Financial Spreads FTSE 100 Rolling Daily market at 5,850. The investor could then set the Stop Order at 5,805 but also choose for the Stop Loss order to be a Trailing Stop.
If the market then moves up, i.e. in the investor's favour, then the Trailing Stop will move up according to the size of the increments applicable to that market. In this example, the Trailing Stop is set to increments of 10 points.
Therefore, if the FTSE 100 market moves higher by 10 points to 5,860, the Trailing Stop will jump up 10 points to 5,815.
If the FTSE 100 market continues to rally and doesn't fall back, then for every 10 points it rises, the Trailing Stop will carry on stepping higher in increments of 10 points.
If at some point the FTSE 100 Rolling Daily market does turn lower, then the Trailing Stop will remain at the last level it stepped to and act as a normal Stop Loss order.
It is important to note that Stop Losses and Trailing Stops are not guaranteed. The markets can, on occasion, slip through a Trailing Stop / Stop Loss level. If this happens the trade will be closed at the next traded level.
About Financial Spreads
Financial Spreads offers more than 2,500 markets including shares, commodities, bonds, stock market indices and forex spread betting markets.
With spread betting, investors can speculate on markets to increase and decrease. Financial Spreads clients can trade via www.FinancialSpreads.com and over the phone. The service is commission-free and there are no brokers' fees. Financial Spreads also offers 24 hour spread betting on popular markets from Sunday evening through to Friday evening.
Financial Spreads is a trading name of London Capital Group (LCG) which is authorised and regulated by the Financial Services Authority. LCG is a company registered in England and Wales under registered number: 3218125. Registered address, 2nd Floor, 6 Devonshire Square, London, EC2M 2AB.
Website: http://www.financialspreads.com
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Press Release Contact Information:
Adam Jepsen
FinancialSpreads.com
Spokesman
2nd Floor, 6 Devonshire Square
London
UK EC2M 2AB
Voice: +44 (0)20 7456 7061
Fax: +44 (0)20 7456 7013
Website: Visit Our Website |
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