Is low risk forex trading a myth or reality?
With extreme levels of uncertainty in equity markets, and risk aversion weighing on traders’ minds, many have been looking to alternative asset classes to participate in. Forex has become increasingly popular as clients move away from trading equities. The forex market trades 24 hours a day and can be easily traded from both the short or long side.
Smaller and less frequent price gaps have seen forex become a safe haven of sorts, with traders adapting their strategies and placing a much larger emphasis on risk management. Trading forex with stop losses protects your downside, while allowing you to maximise the gains when the market moves with you. IG Markets offers tight spreads, low margins and a huge range of currency pairs as part of our comprehensive award-winning forex trading service.
Risk management tools
Risk management is crucial to the number one rule of trading – preserve your capital. Our unrivalled risk management tools offer a range of protection methods against adverse market moves, letting you trade forex without assuming an open-ended liability.
Guaranteed Stops
Our Guaranteed Stops offer the best possible protection, should the market move sharply against you. Guaranteed Stops put an absolute limit on your liability in the event of a violent market movement, without restricting your profit potential.
Trailing Stops
With Trailing Stops, you can limit your losses while maximizing your potential profits. You set the conditions for your Stop to move automatically. Trailing Stops can be used on long or short trades, helping you to secure your gains as the market moves.
We have a variety of archived online seminars that help you make the most of the entire range of risk management tools available at IG Markets:
- Using Automatic Trailing Stop Orders
- Understanding Stops and Limits
- Trading in Turbulent Times
- Trading Psychology and Risk Management
The above comments do not constitute investment advice and IG Markets accepts no responsibility for any use that may be made of them.
Updated: 02/03/09