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So how can gnuTrade help minimise my trading risks?
There are a number of ways that gnuTrade can help you minimise your trading risks. Unlike many other trading firms, GnuTrade lets you bet with small amounts of money. For example, the minimum bet amount for a ‘per point’ trade is £1, €1 or $1 per point. For a 'basic' bet the minimum bet is £5, €5 or $5, and for a ‘back a player’ bet, the minimum bet amount is £1, €1 or $1.
'Stop Loss' feature
GnuTrade’s ‘Stop loss’ feature for ‘per point’ trades, lets you place a stop order to minimise your losses if the markets move against you. The most that you could lose on a 'buy' trade is, the difference between the buy price and the stop price divided by the point value, multiplied by the bet amount per point. The most that you could lose on a sell trade is, the difference between the sell price and the stop price divided by the point value, multiplied by the bet amount per point.
But there’s no need to worry about making these complex calculations as gnuTrade does the maths for you — before you put on a trade. This means you can keep adjusting the stop value until you are happy with the potential loss amount and only then place your trade. You can also re-adjust your stop loss value on an open trade and close the trade at any time while the markets are open.
All trades automatically close at the end of the trading day for that particular market (unless you specifically request a rollover to keep it open) so this could also help minimise your risks. (The ‘Margin balance’ on the trading screen lets you see the maximum amount you could win or lose on the trades you have open, so you are always aware of your risks.)
Create graphs
Although the past performance of a market does not influence or guarantee future results, studying it can help you get more familiar with a market. GnuTrade’s ‘Graphing’ feature lets you create weekly or daily graphs of each market so you can look at its past price history. This can help you judge its volatility and decide how much money you are willing to place on a trade. (If you click the ‘My Accounts’ tab in the 'My Details' section, you can look at the details of your previous trades.)
When trading with real money, you will never lose more than the balance in your account and you cannot put on a trade unless you have sufficient funds in your account. Many other trading firms have ‘credit’ facilities so your losses are open ended and you are unaware of the maximum amounts you could lose. You could even lose more money than you originally put in to your account.
If you are new to trading or don't want to trade with real money, gnuTrade lets you trade the live markets with play money. Trading with play money can help you gain confidence and experience, and help develop your trading style, without any risks to your money.
Now that you have completed all three modules, click the Trade Now link in the top menu, to practise trading with play money.
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