Higher returns for the risk-averse

Options and covered warrants allow you to trade for higher returns, whilst limiting your potential losses. Here's what you need to know.

Many traders like the potential for higher returns that leverageinvestments such as spread betting or contracts for difference (CFDs) can provide, but fear losing more than their initial investment.

This can be controlled with stop-losses, but some investors prefer not to have the complication of managing these, especially while getting to grips with leveraged trading for the first time.

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MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.