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. To place an absolute limit on potential losses you should use a Guaranteed Stop (see below).

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.

At InterTrader.com you can guarantee your automatic stop-loss by selecting it to be a Guaranteed Stop. With a Guaranteed Stop order you can trade safe in the knowledge that, should the market gap through your stop level, you will not suffer any extra losses from slippage and you will be stopped out at the exact level you requested.

There is a premium for selecting a Guaranteed Stop, calculated as a multiple of your stake, and a minimum distance at which your stop must be placed. For example, the premium and minimum distance for the UK 100 Rolling Daily are 2 and 30 respectively, so if you bought £5 per point at 5900.0, your account would be debited £10 (2 x £5) and your stop would have to be a minimum of 31 points away from the opening price (the minimum distance is the number specified plus the market's spread, in this case 1 point).

It is also possible to specify that any stop-loss linked to a new order (i.e. an order to open a new position should the market hit a specified level) is a Guaranteed Stop. In this case the premium is not applied until the new order is filled.

You can place or amend a Guaranteed Stop at any time when the underlying market is open. Any change to the level must be at least the stated distance (minimum distance plus the market's spread) from the current quote.

If you close a position with a Guaranteed Stop attached before the level is triggered, then the premium is not recredited to your account. To find out the Guaranteed Stop premiums and minimum distances for individual markets please see the Market Info Tables.