Stop / losses wins
Many firms impose a ceiling price on
the amount a bettor can win or lose. Often the amount
will vary depending on what type of account is held.
Although to some, this can sometimes be seen as a blessing,
if they are viewed in terms of their overall effect
they can seem like an annoyance. The firms will tell
you that stop / loss wins are in place so as to avoid
major damage to the finances of either party. They are,
however very much in favour of the spread firm.
Stop / loss wins are valuable only when your trade
has its loss potential limited but where there is no
effect on your upside. If for instance, you were to
buy the “time of the fastest goal” in the
Premier league season, any stop / loss is likely only
to come into effect on the buy side and could provide
an effective barrier to losses spiralling well out of
control.
You can also use the closing-out approach as a stop-loss,
as long as the market remains open. By buying or selling
at the currently quoted price, you can counter any further
worsening of the situation, vis-à-vis your original
bet.
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