Winspreads

Spread Betting Account Types

We offer you two types of Spread Betting account so you can select the account type that fits your trading strategy.

The Standard Account

Standard Account holders will have the option to place trades with/without stop order (either standard stop orders or guaranteed stop orders) to protect their open trade(s). As a Standard Account holder, you have the flexibility to decide whether you wish to protect your open trade(s) on a case by case basis.

A guaranteed stop order sets the worst case scenario for your open trade(s) and protects your open trade(s) from price gapping. If your open trade(s) has an attached guaranteed stop order, your maximum losses are limited to the price set at the guaranteed stop order.

A premium will be charged for attaching a guaranteed stop order to your open trade. The premium for the guaranteed stop order is adjusted into the trade price. If you open a long position, the premium will be added to your trade price. If you open a short position, the premium will be subtracted from your trade price.

Open trades without guaranteed stop orders attached will automatically be netted off against each other. For example, if you have a long trade open in Vodafone shares and you subsequently sell the same quantity of Vodafone shares, the "sell" will automatically close off the original open "buy". Therefore your profit/loss will be realised when the opposite trade to your opening trade is executed.

On the other hand, open trades attached with guaranteed stop orders will not net off against each other. To close a trade with an attached guaranteed stop order, you will have to actually close that trade.

The Limited Risk Account

The "Limited Risk Account" enables you to limit your exposure to losses, as an associated guaranteed stop order is created for every open trade that you hold. Hence, each trade is treated as an individual open position. At the time you place the trade, a guaranteed stop order will be created automatically at the equivalent distance to the amount margined on your position from your opening price. If you are going long a guaranteed sell stop would be created and if you’re going short and guaranteed buy stop would be created to protect your risk exposure.

The guaranteed stop order will become active once your trade is executed. If you close your trade before the guaranteed stop order is triggered, your guaranteed stop order will automatically be cancelled. On the other hand, if the guaranteed stop order is triggered before you close your open trade, your position will be closed and you will realise a loss.

A guaranteed stop order sets the worst case scenario for your open trade(s) and protects your open trade(s) from price gapping. If your open trade is attached with a guaranteed stop order, your maximum losses on this trade are limited to the price set in the guaranteed stop order.

A premium will be charged for attaching a guaranteed stop order to your open trade. The premium for the guaranteed stop order is adjusted into the trade price. If you open a long position, the premium will be added to your trade price. If you open a short position, the premium will be subtracted from your trade price.

Open trades with guaranteed stop orders will not net off against each other. To close a trade with a guaranteed stop order, you will have to actually close that trade.

The margin and financing for Limited Risk Accounts are calculated on a gross basis.