Forex Trading: Getting Started with Limited Risk

Filed under: Learn Forex Trading |

There are some forex brokers who offer you money back if you take a loss in your first month of trading. GKFX are one broker currently making such an offer. They are offering up to 300 GBP cash-back on new spread betting accounts for the first month. This means that if you make a loss of 300 pounds in your first month, then they will refund this money into your account. Not bad eh? This gives the new forex trader a great opportunity.

 

The GKFX spread-betting platform allows you to use MT4. This is not common with spread betting companies and it is a far superior platform. What you could do, is open a spread-betting account with GKFX, or indeed, any other broker that you can find running a similar offer, and use the cash-back offer to do some risk-free trading. For example, you could risk 50 GBP per trade, which would give you a risk-free drawdown of 6% with a theoretical bank of 5,000 GBP and a risk level of 1% of your bank per trade. You could even go with a theoretical bank of 2,500 GBP, with a risk level of 1% of your bank per trade. This would give you a risk-free drawdown of 12%, but as the offer only extends for one month, then this would be perhaps wasting some of the opportunity to make some money.

 

In summary, when you first start out trading with real money, it can be incredibly stressful and emotional. Offers of cash-back on losses like these can help to alleviate some of this tension and agitation, and let you get on with the business of trading. Also, if you do get in profit after that first month, you can pull your original funds and be left trading with the risk-free profit that you made. It is a win-win situation.

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