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Hedging: Playing it safe by choosing to run the risk

By Steve Lodge

Published: December 7 2007 05:20 | Last updated: December 7 2007 05:20

Most financial spread betters, say companies, are out to “magnify the upside” – boost their returns from rising prices and markets.

In turn, this leverage is what makes spread betting so risky: losses can also increase rapidly and traders can lose all the money they put up and even be called on to stump up more if a trade goes against them.

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