Risk Management

Superior Risk Management

You will have access to risk management tools which offer a range of possible protection methods against an adverse market move, letting you trade CFDs without assuming a potentially open-ended liability.

Guaranteed Stops

Guaranteed Stops offer the best possible protection, should the market move sharply against you. Guaranteed Stops put an absolute limit on your liability in the event of a violent market movement, without restricting your profit potential. When you place a Guaranteed Stop you set a maximum/minimum exit price for your trade. Your position will be closed at exactly your selected level should the market move against you, even if there is a very sharp overnight move.

There is a one-off extra charge, in effect an insurance premium, for this Limited Risk protection. In most cases this is just 0.3% of the underlying transaction value. Limited Risk protection is not available on all shares and the size of the position on which we may be able to offer this facility may be limited. IG Markets will be happy to advise you of the facilities available for any particular share.

The margin requirement for a Limited Risk trade is equal to the amount which would be lost if your Guaranteed Stop were triggered, plus 10% to cover any interest or dividend adjustments.

You can also access a full range of non-guaranteed orders to open and close CFD positions. These are available free of charge on most transactions.

Trailing Stops

Trailing Stops are part of the range of non-guaranteed orders, and allow you to track profitable positions automatically.

This new type of Stop order means you do not have to manually monitor your stops and move them constantly. Instead, the Stop automatically trails the underlying market, should it move in your favour.

You set the conditions for the Stop to move, including the distance from your opening level, and the 'Step' size - the size of the increments by which the Stop can move. Trailing Stops can be used on long or short trades, helping you to secure you gains as the market moves.

Setting up a Trailing Stop

There is no charge to use a Trailing Stop. However, you must first activate Trailing Stops for your account on PureDeal. To do this, simply:

• Go to Preferences (in My Account)
• Select 'Allow Trailing Stops'
• Accept the special terms and conditions
• Click 'Set Preferences'

You will now find a Trailing Stop check-box on your Deal Ticket for currency trades, plus selected indices and commodities.

Remember that even with Limited Risk protection, trading CFDs carries a high level of risk to your capital, which may not be suitable for everyone. Please ensure you fully understand the risks involved.