Spread betting and CFD trading are high risk and so good risk management is important.One way of improving your risk management, is to add Stop Loss orders or Guaranteed Stop Loss orders to your trades.
These orders are designed to limit your downside without limiting how much you can make on a trade. Both types of Stop order have their drawbacks but it looks like some spread betting companies are improving how these orders work for investors.
An important factor when spread betting the forex markets is the types of currency pair you choose to trade. For example, specific pairs may be significantly moved by commodity price changes (JPY and oil being a classic example). At certain times of day some pairs may suffer from low liquidity and wider spreads.
So what are the 3 main types of currency pair?
Spreadbetting FX Currency Pairs
1. Forex Majors