Risk management
CFDs allow you to trade on margin which not only allows you to increase your potential gains but also increases your risk and can potentially lead to you losing more than your initial deposit. To help you take control of your risk, we provide a range of education seminars and free risk management tools. As well as protecting yourself against sudden price movements, these orders can be set to open and close market positions so you do not have to be tied to your computer all day.
Risk management tools
Limit order
You can use these to close out your position and take your profit at a previously specified price. You can also use them to open a position at a predetermined level.
Stop order
Like limit orders, you can use these to specify a price to close out your trade, but this time preventing you from making further losses if the market moves against you. Stop losses can also be used to open new positions.
One cancels the other (OCO)
This is effectively a stop and limit order linked together on the same instrument. When one of your orders is activated the other one is automatically cancelled so it does not trigger a new order if the level is reached.
Guaranteed stop order (GSOs)
This stop guarantees to close a position at a price you specify should the market move against you. Even if there is a gap in the market, a GSO will close you out at the price your specified. It acts as insurance for your trade and so carries a charge to place one.
If done
An ‘if done’ order is an additional stop loss or limit order that you can attach to an initial order. It is very useful when you want to place an order to open a position at a predetermined price with a stop or limit created when that position is triggered.
