New Trailing Stops Launched by Financial Spreads to Improve Customer Experience

By mosesbet · Filed Under News Comments Off on New Trailing Stops Launched by Financial Spreads to Improve Customer Experience 

Financial Spreads, a London-based spread betting firm, has recently launched new risk management software called Trailing Stops for its customers.

The UK spread betting company, which offers spread betting charts and live prices for over 2,500 markets, said that all customers with Financial Spreads can use the Trailing Stops tool without having to pay anything extra. In addition to Trailing Stops, Financial Spreads also offers other spread betting tools like Guaranteed Stop Loss Orders, Stop Loss Orders, Limit Orders and more.

How Trailing Stops works

Trailing Stops is a risk management tool that all spread bettors with a Financial Spreads account can use. Traders can apply the Trailing Stops order when they place a trade order. Like a Stop Loss order, the Trailing Stops order will minimize the risk of loss when the market is moving against your trade. But unlike a normal Stop Loss tool, this tool is capable of adjusting the order according to the market movement.

A regular Stop Loss order will minimize your losses by settling the trade when the market crosses a pre-set level. But Trailing Stops can track a profitable trade automatically and resets the limit accordingly. This means that you won’t have to constantly track market moves to adjust your stop loss order. The best part is that you can enjoy this effective stop loss order tool from financial spreads at no extra charge.

Understanding it better

To understand the functioning of Trailing Stops better, here’s an example.

Speculating a rise, say you invest ₤5 a point on the FTSE 100 Rolling Daily market. Assuming that the market was at 5,800, you can place a stop loss order at 5,805. If you place a trailing stop order of 10 increments, , every time the market rallies up by ten points, Trailing Stops order also goes up by 10 points. In this example, if the market goes up to 5,810, the Trailing Stops automatically goes up to 5,815.

However, if the market stops rallying and makes a turn over, Trailing Stops will remain at the last level it has upped to. Then, it just acts like a normal Stop Loss order.

Video Explaining How to Use Trailing Stops:

 

Be Sociable, Share!