Understanding stop losses when spread betting

Stop losses basically prevent you from losing too much money.  It is designed to limit the amount you lose to a certain extent. Stop losses are an integral part of spread betting. Stop losses are very easy to understand and you need to think of them in a similar way to market orders. Market orders also prevent you from looking too much money.

There are two types of stop loss orders that you need to be aware of before starting to spread bet. A stop order and a stop limit order.
A stop order is used to protect a long position when spread betting. It is an order to sell commodities below the current market price but only when the market is trading below your specified stop price. In order for this stop order to work, the commodity must be trading below your specified price.

A stop limit order is similar to a stop order but the price that is set on the stop limit order is the only price that you will accept for your commodity.  This type of stop order is currently not advised whilst the markets are falling as your commodity may never sell.