Risks of Trading Spreadbets Q: What are the Risks? A: What are the risks of spread betting? We have to tell you that there is risk involved in spread betting or for that matter any leveraged traded product be it CFDs...
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Spread Betting and Gambling
Spread Betting and Gambling Q: Is Spread Betting Gambling? I have been thinking about opening a spread betting account with but having only traded in shares I have been asking myself (and sometimes worryingly) this question...
Derivatives and the History of Spread Betting
Derivatives and the History of Spread Betting Q: How does it differ to conventional betting? A: In normal fixed odds betting, you take a view on a horse race or a football game and look for a win or lose situation. However...
Why is it called Spread Betting?
Why is it called Spread Betting? Q: Why is it called Spread Betting? A: The term spread betting is used because there is an additional spread around the market price (they make their money on the spread, hence the word) and...
Controlling Emotions and Overtrading
Q. I’m looking for a spread betting company that will hold the trade open until I choose to close it, with me incurring the daily interest to keep the trade open, but without it closing each night… (Finspreads...
Impulse Buying and Panic Selling
Q. The market has definitely shafted me, being a newbie and getting too greedy. I’m always buying at the wrong time… I’m always buying at the wrong time, when I should have sold but I still hold on to them...
Phased Exits and Managing Losses
Q. ‘Problem is that sometimes I end up with stocks that go in the ‘wrong direction’ for a long time as I don’t like exiting with a loss…’ A: Oh dear. Yes – it does take a while to...
Spikes Taking Out Stops
Spikes Taking Out Stops Q. I trade the news but the broker is slipping my stop orders!! Being the news bet tart I am, pretty much a straddle over anything I can get my legs around! It wasn’t paranoia with getting...
Stop Loss Orders: Limitations
Q. When is the use of stop losses not appropriate? A: Using protective stops to manage risk has downsides especially in volatile markets but then there are pluses and minuses to every risk management strategy – the...
Trailing Stops and the Limitations of Stop Losses
Q. What is a Trailing Stop Loss? A: This is a stop loss level that automatically adjusts higher or lower as the underlying stock or spread bet instrument moves. So a trailing stop would automatically move up behind the...