When we placed our first spread bet, we did something extremely careless that will have any experienced trader shaking their heads: we didn’t set a ‘stop-loss’. While not every trader uses these, most successful ones do – and beginners certainly should.
A stop-loss instructs our spread betting provider to close our bet once it goes against us by a certain amount.
In our previous example, we could have set a stop-loss at 6,630, meaning that if the FTSE 100 falls below this, our bet will be closed and our loss should be limited to 20 points (£200 [...]
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