Financial Spreads Adds Guaranteed Stop Orders

Jan. 26, 2011 - PRLog -- London based financial spread trading company Financial Spreads have announced the addition of a new function to their online platform.

The firm, which offers clients the opportunity to spread bet on a range of financial markets, will now be offering Guaranteed Stop Loss orders on their spread betting platform, http://www.financialspreads.com/.

Until now, clients were able to speculate on the financial markets knowing that their trade was protected by a stop loss. A stop loss order will still be available, and will be automatically added to all trades with the firm, however now, for added security, FinancialSpreads.com are also offering Guaranteed Stop Losses.

Added Security

As mentioned, Financial Spreads already offer stop losses, however regular stop losses do not guarantee the point where your trade will be closed if the market gaps.

For example, let's say that you buy the FTSE 100 at 6000, and you set your stop loss at 5980. Should the UK index 'gap' and drop to 5970, then your trade would be closed at 5970, rather than at 5980.

This is because the index didn't trade at 5980, and therefore the firm didn't offer the price level. The next available price that was offered was 5970, and therefore your trade would be closed at that level.

Let's take the same example, however instead of filing a regular stop loss order at 5980, you file a guaranteed stop loss order at the same level. If the market were again to gap and drop to 5970, your trade would be closed at 5980, as your stop loss was guaranteed.

Note that as Guaranteed Stop Orders are a form of insurance against market gaps they come at a small extra cost. Firstly, there's a small premium you have to pay for selecting your mandatory Stop to be guaranteed and, secondly it needs to be placed further away from your entry level than if it was a non-guaranteed Stop.

Improved Service

Adam Jepsen, spokesperson for Financial Spreads, says that the new function will allow clients to trade with greater confidence. "We've been working hard and have a major new addition on our trading platform: guaranteed stops," he said.  

"We take our customer feedback seriously and are very pleased to announce we are rolling these [guaranteed stop loss orders] out due to popular demand.

"Guaranteed stop orders enable you to trade with complete confidence that you will be protected against any market gaps or slippage by being filled at the price level you have specified."

# # #

About Financial Spreads

Based in London, Financial Spreads is a trading name of London Capital Group (LCG) which is authorised and regulated by the Financial Services Authority.

Investors can spread trade on equity markets, stocks, FX rates, commodities, interest rates, and bonds both over the phone and online via www.FinancialSpreads.com. The spread betting service (http://www.financialspreads.com/public/spread_betting.htm), which is commission free, allows spread betting account, http://www.cleanfinancial.com/spread_betting_account.php, holders to speculate on financial markets to go either up or down and includes access to a range of charts and research data.

Spread betting carries a high level of risk to your capital and you may lose more than your initial investment. It may not be suitable for all investors. Only speculate with funds that you can afford to lose. Please ensure you fully understand the risks involved and seek independent advice where necessary.