As CFDs are margin-trading products, they can provide leverage which can return significant profits, but also losses too.
We provide a number of tools to help you manage your risk and know your potential losses upfront.
A Guaranteed Stop on your CFD position puts an absolute limit on your potential loss, with no potential for slippage.
Costing a small premium, these stops let you specify the exact point at which you want to close a position, and they guarantee that you will be closed at that level should prices fall below it, even if the market gaps.
Non-guaranteed Stops work in much the same way as Guaranteed Stops, that your position will be closed should the market move past your specified level. They do not, however, guarantee to close your trade at that level. If the market were to gap, your stop could be activated at a level lower or higher than you specified. This is known as 'slippage'.
Non-guaranteed Stops can be applied to positions free of charge.
A type of Non-guaranteed Stop, Trailing Stops track market movements in your favour, and close your trade if it moves against you. This lets you protect profits without having to manually monitor your position and adjust your stop.
Trailing stops are free, but you need to activate them first within our trading platform, as follows:
- In 'My Account' go to 'Settings' and select 'Preferences'
- Select 'Allow Trailing Stops'
- Accept the terms and conditions
- Click 'Set Preferences'
You can set a Limit order to open or close a trade when the market reaches a specific level. These orders can be particularly useful in managing your portfolio without constantly accessing to your account.
Our examples page outlines how each of these orders can be used in practice.
CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial investment, so please ensure that you fully understand the risks involved.