This means, for instance, that if you buy a team’s runs during a Test match and they suddenly start losing wickets, your losses will be limited to, say, 150 or 200 runs, depending on the particular firm’s stop-loss level. So, for example, you buy England runs at 340 against India. They lose four wickets with only 40 on the board and the quote is down to 190.
You would lose 150 times your stakes—even if they eventually were all out for just 140. The downside to accounts such as Sporting Index’s Shield Account is that they also impose a stop-loss on your profits, so that in the above example the most you could make would be 150 times your stake. The exception to this rule is Cantor’s Advantage Account that gives clients a stop-loss, but allows unlimited profits. This is perhaps the best of both worlds although there is a limit (albeit pretty generous for most average punters) in the size of stake.
The following topics shows Cantor Sport’s maximum stakes and stop losses for those clients with Advantage Accounts, although the other firms apply similar limit levels. The last point in the discussion is what might be termed the volatility factor. It is based on Cantor’s notional trading requirement factor— effectively the multiple away from the original quote that a market might end up at as an extreme.