Spread Betting with 32Red Spreadbet
Risk Management with 32Red Spreadbet
Managing Risk
Spread betting allows you to trade on margin. Trading on margin increases your risk because you can potentially lose more than your initial deposit. Before you start trading with us, we recommend that you attend one of our free client seminars. 32Red Spreadbet offers a wide range of seminars and workshops; where you can learn the basics of spread betting.
32Red Spreadbet also offers clients the opportunity to use a Controlled Risk Bet (CRB). CRBs enable you to place a stop order at a predetermined level in order for you to guarantee your maximum loss.
Therefore you have a known 'worse case scenario' should the market move against you. Because we guarantee the price at which the trade is stopped there are conditions to this type of order. Specifically there is a premium charge when opening the trade, and also any stop loss can only be placed a minimum number of points / percentage away from the current market price.
Where a CRB position is rolled a further premium is chargeable on the rollover. It is rare to find guaranteed stops in the traditional Share trading environment.
View CRB example