In this chapter we take a good look at the stop loss.
Cart before the horse?
We haven’t even placed a bet yet, and here we are about to discuss one way of exiting them! But for many losing spread bettors the two following simple rules could improve their performance significantly:
But there’s no such thing as a free lunch. In spread betting there are often trade offs. Potential advantages are often partially offset by potential disadvantages. This is particularly noticeable as we look at the stop loss.
Let’s address the basic question ...