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10

Guaranteed protection

The Fixed Risk account is designed to address some of these risks by providing a brake (guaranteed stops) to your trading position at a level you stipulate when opening the trade. This allows you to control both the level of gearing applied to your trade and defines the maximum financial loss you are prepared to accept.

This means that even if the market moves above or below your chosen level, we will close your position at the level you specified – guaranteed.

An additional safety feature installed within the Fixed Risk account ensures that your account cannot go overdrawn. Trades which you choose to open without setting a guaranteed stop level will be automatically closed should your account balance fall below zero – your account balance will then be returned to zero.

Risk management toolkit

• Limit order – lets you pre-determine either a price higher than the current price at which you wish to sell, or a level below at which you wish to buy.

• Stop loss order – can be used to limit your trading risk and can also be used to lock in profit.

• If done order – a combination of two orders and can be used if you are unable to continually monitor the market.

• One cancels the other order – is the combination

of both a limit and a stop. It can be used to take a profit if the market moves in your favour or to limit losses if the market moves against you.

To find out more

natweststockbrokers.com/cfdtrading

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