City Index Spread Betting Tips – Limit Orders

LONDON--(BUSINESS WIRE)-- Spread betting (http://www.cityindex.co.uk/spread-betting/) can be tough. Not only do you have the markets to contend with, you can also have your own emotions working against you.

In spread betting, a trader’s psychology is a key factor in whether they ultimately turn a profit or a loss. Spread bettors literally watch live as their profits or losses evolve with the underlying market, and this can be tough on the emotions. With this in mind, limit orders can be an invaluable way of removing some of the pressure.

Limit orders lock in profits by closing a winning trade once a market passes a trigger value set by you. This means that you are able to automatically cash in your gains if the market moves in the way you expect, helping you to reach your profit targets.

For example, imagine you bought £2 per point of the UK 100 at 5000, and highlighted 5200 as your profit target, a £400 gain. You could use a limit order to ensure that, should the UK 100 reach 5200, the trading platform would automatically close out your trade at that precise figure.

To help you manage your spread betting and CFD trading more efficiently, City Index offers a range of risk management options, including limit orders, stop losses and guaranteed stop losses. To learn more about spread betting risk management with City Index, visit: http://www.cityindex.co.uk/learn-to-trade/risk-management-orders.aspx

Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.

About City Index:

Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.

As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, contracts for difference (CFDs) and, in the UK, financial spread betting.

We constantly look to improve the performance of our platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer service and support. Visit http://www.cityindex.co.uk/ for more information.

City IndexJoshua Raymond+44(0)20-7107-7002
joshua.raymond[at]cityindex.co.uk

Source: City Index