London (OPENPRESS) September 1, 2011 - UK spread trading company, Financial Spreads, has launched a new limited risk account.
The new account is designed to help investors by placing a Guaranteed Stop Order on every new position. A Guaranteed Stop Order puts an absolute limit on how much an investor can lose on a trade without putting a limit on the potential profit.
According to Adam Jepsen, spokesman for http://www.financialspreads.com/, the new Limited Risk Account is ideal for both investors who are new to financial spread betting and those wanting a little extra safety net when trading.
"Risk management is important, particularly in the current volatile markets. The Limited Risk Account helps to minimise the risk of trading. Every time a client opens a new position a Guaranteed Stop Order is attached and therefore, should the market move against the client the trade is guaranteed to close at a pre-specified level. This safety net should help a range of investors".
"Financial Spreads takes risk management seriously so even our Standard Account automatically adds a Stop Loss to every new position, although these are not guaranteed. The markets can, on occasion, jump straight through Stop Loss level, this is known as 'gapping'. If that happens and the market gaps, a Stop Loss will close a spread bet at the next best traded level.
"A Guaranteed Stop Order is essentially a form of insurance against market gaps and they come at a small cost. When a client has gained some experience with the Limited Risk Account, they can upgrade to a Standard Account where Guaranteed Stop Orders are not mandatory but can still be added to trades," concluded Jepsen.
Before trading, please note that spread betting is leveraged and therefore carries a high level of risk to your funds, it may not be suitable for all investors. It is possible to lose more than your initial investment and therefore you should only speculate with funds that you can afford to lose. Ensure you fully understand the risks and, where necessary, seek independent financial advice.
The financial spread betting company offers investors access to financial spread betting charts a wide range of global markets including shares, forex, stock market indices, commodities, interest rates and bonds. The service is commission-free and there are no brokers' fees. Financial Spreads clients can trade via www.FinancialSpreads.com and over the phone. Popular markets such as the FTSE 100, EUR/USD, gold and crude oil can be traded 24 hours a day, 5 days a week.
