RISK WARNING NOTICE
Before trading Contracts for Difference, Spread Bets or Foreign Exchange (ForEx or FX), ensure you fully understand the risks involved. These products may not be suitable for all types of investor. Trading in Contracts for Difference / Spread bets / FX carries a high degree of risk and is generally considered suitable only for the more experienced investor. Leveraged products carry a high degree of risk for your capital, and in some circumstances you may be liable for a greater sum than your initial capital invested. Past performance is not necessarily a guide to future performance. Seek independent financial advice if necessary. These products are suitable only for people over the age of 18. Information and analysis produced by Pretium Securities Ltd does not constitute a recommendation or offer to make a transaction in any derivatives or securities, and is intended to be general in nature. Pretium Securities Ltd is fully authorised and regulated by the Financial Services Authority.
The past performance of any investment is not necessarily a guide to future performance. The value of shares or income from them may go down as well as up. The value of shares may rise as well as fall due to the volatility of world markets, economic conditions/data and/or changes in the rate of exchange in the currency in which the investments are denominated. You may not necessarily get back the amount you invested. If you are in any doubt about investment, you should seek independent financial advice
 
Superior Risk Management
PRETIUM Securities' risk management tools offer a range of possible protection methods against an adverse market move, letting you trade CFDs without assuming a potentially open-ended liability.
Guaranteed Stops
 
  Our Guaranteed Stops offer the best possible protection, should the market move sharply against you. Guaranteed Stops put an absolute limit on your liability in the event of a violent market movement, without restricting your profit potential. When you place a Guaranteed Stop you set a maximum/minimum exit price for your trade. Your position will be closed at exactly your selected level should the market move against you, even if there is a very sharp overnight move.

There is a one-off extra charge, in effect an insurance premium, for this Limited Risk protection. In most cases this is just 0.3% of the underlying transaction value. Limited Risk protection is not available on all shares and the size of the position on which we may be able to offer this facility may be limited. We will be happy to advise you of the facilities available for any particular share.

The margin requirement for a Limited Risk trade is equal to the amount which would be lost if your Guaranteed Stop were triggered, plus 10% to cover any interest or dividend adjustments.

We also offer a full range of non-guaranteed orders to open and close CFD positions. These are available free of charge on most transactions.

 
Trailing Stops

Trailing Stops are part of our range of non-guaranteed orders, and allow you to track profitable positions automatically.

This new type of Stop order means you do not have to manually monitor your stops and move them constantly. Instead, the Stop automatically trails the underlying market, should it move in your favour.

You set the conditions for the Stop to move, including the distance from your opening level, and the 'Step' size - the size of the increments by which the Stop can move. Trailing Stops can be used on long or short trades, helping you to secure you gains as the market moves.

See an example of how Trailing Stops work.
Setting up a Trailing Stop

There is no charge to use a Trailing Stop. However, you must first activate Trailing Stops for your account on PureDeal. To do this, simply:

  • Go to Preferences (in My Account)
  • Select 'Allow Trailing Stops'
  • Accept the special terms and conditions
  • Click 'Set Preferences'

You will now find a Trailing Stop check-box on your Deal Ticket for currency trades, plus selected indices and commodities.

Remember that even with Limited Risk protection, trading CFDs carries a high level of risk to your capital, which may not be suitable for everyone. Please ensure you fully understand the risks involved.