How to stem spread betting losses

Anyone who tries spread betting should know about stop losses and which type will suit them best. Tim Bennett explains the three most common.

No one likes to lose - most of us assume we'll win, or we'd never trade. So, many novice traders don't think hard enough about minimising losses - after all it's much more fun to imagine what you'll do with your trading gains.

However, anyone who tries spread betting should be comfortable with the phrase 'stop-loss'. And then think carefully about which type will suit them best. Here are three.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.