Spread Betting and CFD trading carry a high level of risk to your capital; you should ensure you understand the risks involved. Please read the full risk warning.
Spread Betting offers the chance to make significant profits, though there is also the risk of incurring losses should the market move against you and the real possibility of losing more than you initially invest. With the Controlled Risk bets, however, you can put an absolute limit on potential losses while enjoying unlimited profits.
Controlled Risk bets make it possible for you to put an absolute limit on potential losses. You can choose to open your position as a Controlled Risk bet. This means that you specify a level at which you want your bet to be closed, should the market move against you. IG Index then guarantee your position will be closed at this level, even if the price gaps suddenly.
There is an extra charge for this protection, in the form of a Controlled Risk premium, which is added to your opening price. Your position is closed at the standard 'buy' or 'sell' price.
Please note that unlike the non-guaranteed Stops, Controlled Risk bets are not subject to 'slippage', even in volatile markets. Slippage is defined as the difference between your specified stop level and the price at which your order is transacted.
Stop and Limit Orders
You also have access to a full range of non-guaranteed Stop and Limit Orders to open and close betting positions. These are available both by phone and online, giving you the freedom to control your betting even while you are away from your computer.
Trailing Stop Losses
Trailing Stops are the latest in this range, and can help you lock in your profits in volatile markets. These innovative Stops mean you no longer need to watch the market and adjust your Stops constantly: your Stop is moved automatically should the market move in your favour.
Trailing Stops are available on forex bets, plus a range of global indices and commodities. Trailing Stops can be added when placing a trade, or attached to open positions at a later stage. Please note they are not 'Guaranteed': like standard Stops they may be subject to 'slippage' in illiquid or fast-moving markets.
Other ways to limit your risk
Certain types of bet will also place an absolute limit on your risk. For instance, when you 'buy' a traded option your potential loss is fixed at the outset. Likewise, any Binary bet carries a strictly limited liability while giving you the chance to make high short-term gains.