Safeguarding Your Financial Assets and Personal Information
Stop Loss
A stop-loss order functions as a risk management tool designed to mitigate potential losses by automatically executing a trade when a security reaches a specified price, thereby providing a safeguard against sudden market fluctuations or downturns.
Consequently, the stop-loss limit can be set as low as 1%, ensuring that the maximum loss on a declining trade is restricted to 1% of the trade’s value.
A stop-loss order is a directive placed with a broker to buy or sell a specific stock once it reaches a predetermined price. This mechanism is designed to limit an investor’s potential loss on a security position. For instance, by setting a stop-loss order at 2% below the purchase price of the stock, the maximum loss on the investment is constrained to 2%.
It is important to note the key distinction between a limit order and a stop order: a limit order is executed only at the specified limit price or more favourable; conversely, a stop order, once triggered at the designated price, is filled at the prevailing market price, which may result in execution at a price different from the trigger price.
What is the most effective stop-loss strategy?
- As a day trader, it is essential to consistently employ a stop-loss order for all trades…
- An effective stop-loss strategy involves positioning your stop-loss at a level that, if reached, indicates a deviation from your anticipated market direction, thereby signalling that your initial market assessment may have been incorrect.
Your funds are held in a segregated account
All client deposits are maintained in separate, segregated accounts. This ensures that, even in the highly unlikely event of CFD Reserves’ insolvency, your funds remain secure.
Cyber Security Practices
CFD Reserve adheres to the highest benchmarks for safeguarding clients’ funds and personal information. We will not disclose your information, except as required by law.
Insurance coverage of up to $1 million at an additional cost
CFD Reserve has secured an insurance policy from Lloyd’s of London for the benefit of its clients. This policy provides coverage for eligible clients in the unlikely event of CFD Reserve’s insolvency or in the case of misconduct, as defined in the applicable policy.
The insurance provides coverage of up to 1 million EUR, GBP or AUD (depending on the entity), subject to the aggregate limit purchased by CFD Reserve and any applicable excess as outlined in the policy. It covers cash, all CFD positions, and securities. Please be aware that coverage for crypto asset trading (non-CFD) may not be included, as specified in the applicable policy.
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