Limit Your Risk
The recent volatility in global markets makes it hard to predict what is going to happen from one day to the next. We have seen record oil and gold prices, the Fed slashing interest rates in the US, and since the beginning of the year the S&P/ASX200 index has traded as high as 6385.7 points and as low as 5039.6 points.
For the trader these circumstances potentially represent some amazing trading opportunities. Conversely, there is the possibility that you may lose more than you originally anticipated. This is where risk protection can help you take a view without taking on an open-ended liability.
Limited Risk account
With a Limited Risk account you are restricted to placing CFD trades with Limited Risk protection. You decide a Guaranteed Stop level for every position you open. We guarantee that, should the market move against you, your position will be closed at exactly the selected level, even if there is a sharp move overnight. This means that your maximum possible loss is fixed at the outset, with no limit to your potential profit.
Guaranteed Stops are a powerful tool unique to CFDs. At IG Markets we offer them across our extensive range of markets, at usually just 0.3% of the underlying transaction value. The premium is levied when you open the contract. Our uniquely flexible Guaranteed Stops can be moved free of charge as well, and they can be used on both Standard and Limited Risk accounts.
To find out more about trading with Guaranteed Stops please see 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.
31/03/08