Responsible Risk Management

At InterTrader.com we want to make sure that all our clients are protected against unmanageable losses. Spread betting is a high-risk activity and markets can move suddenly, especially when unexpected news breaks. For this reason, we automatically attach a stop-loss order to every position opened with InterTrader.com, to help mitigate losses should the market move against you.

Our automatic stop-loss limits any loss you make on the position to a pre-agreed amount, and the level of your stop-loss is set when you open your bet. Please note that stop-loss orders are not guaranteed and you may still lose more than your initial margin requirement, for instance if the market 'gaps' through your stop-loss level.

How is my stop-loss calculated?

The level of your stop-loss is determined by the funds available in your InterTrader.com account, up to a maximum allowable level set for each individual market. In our Product Info Tables you'll find that each of our markets has a Max CGSL, or Computer Generated Stop Level. If you have sufficient funds to cover the Max CGSL on deposit, the trading system will assign a stop-loss at 80% of the Max CGSL. Otherwise, the system will generate your stop-loss at 80% of the funds available in your account.

For example, the Max CGSL for Daily FTSE 100 is 150, representing a swing of 150 points in the underlying index. If you are opening a position of £2 per point on the Daily FTSE you would need £300 on deposit to cover the Max CGSL, in which case your automatic stop-loss level would be set 120 points away from your opening level (i.e. 80% of the Max CGSL). Should you only have, say, £200 available on your account, your stop-loss level would be set 80 points from your opening level, representing a maximum loss on the position of £160 (as 80% of £200 = £160).

You are not of course restricted to the stop-loss level we set for you automatically. You can either enter your own level when you open your position or amend the level once your position is open, so long as the level is lower than your maximum allowable stop-loss.