Skip main menu Accessibility www.hl.co.uk | Cookie policy | Contact us

Hargreaves Lansdown

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

What are the risks?

Unlike most traditional financial dealing services, Spread Betting is a leveraged product. This means that your initial deposit payment gives you exposure to a comparatively larger portion of an underlying market than if you bought the instrument directly (via a stockbroker for example).

How leverage works

This means that Spread Betting can result in losses that exceed your initial deposit. And without good risk management, it becomes possible to make significant losses over a short period of time. It is therefore important to understand risk and learn how to manage your portfolio effectively.

How do I manage risk?

Understand your market

Before dealing, it is important to understand the market on which you are taking a position. Knowing the potential for each market to experience volatility and establishing the likelihood of sharp price movements is essential when considering the risk associated with each bet. For example, historically some markets are less likely to make sudden discontinuous jumps, while others, such as shares (which can be subject to profit warnings and the like), may be more likely to make abrupt movements.

Monitor your open positions

An equally important risk management strategy is simply to closely monitor your open positions. This is particularly relevant if you have not attached a stop-loss. Volatile markets can move hundreds of points in minutes, and while a good understanding of your market may help pre-empt extreme fluctuations, there is no substitute for actively monitoring your account.

Use stop and limit orders

There will inevitably be times when it is impossible to keep an eye on your open positions. This is why we offer a range of order types to help you manage risk without capping your potential for profit.

Next steps

Find out more about our Introduction programme, which allows you to begin dealing in smaller than normal bet sizes, so you can limit your exposure as you build your Spread Betting confidence.

Open a Spread Betting account

Important information

Spread Betting and CFD trading carry a high level of risk to your capital; you should ensure you understand the risks involved. Please read the full risk warning.

Why HL Markets?

  • Award-winning platform
  • Access thousands of markets
  • Free education
  • Tight spreads

Apply now

Have a question?

Call us on 0117 988 9915
8.00am to 6.00pm (Monday to Friday)

HL Markets account holders
Call us on 020 7573 0055
Email us