In plain English
What Guaranteed stop-loss means
With a standard stop-loss, a fast market can gap past the stop and produce slippage. Under a genuine guaranteed stop-loss, the provider agrees to absorb that difference for an eligible order and close at the stated level. This is a contractual product feature, not a universal order type, and it is commonly subject to conditions.
Why it matters
A guaranteed stop-loss can make the maximum price movement between the stated stop and the exit price more predictable for a covered position. It does not eliminate every cost or risk: spreads, financing, commissions, account rules, and the provider’s terms still apply. Providers may charge a premium or restrict amendments near the market.
Example
A trader is long a CFD with a guaranteed stop-loss at 1.0800. Overnight news causes the relevant market price to move directly from 1.0820 to 1.0760. If the position and order meet the provider’s guarantee conditions, the exit is at 1.0800 rather than 1.0760. The example excludes spreads, fees, and other account charges.
Quick answers
Common questions
Does a guaranteed stop-loss remove all trading risk?+
No. It addresses execution slippage between the guaranteed stop level and the exit price for an eligible position. The trader can still lose up to that level and may incur spreads, financing, commissions, premiums, or losses from other positions.
Why might a guaranteed stop-loss cost more?+
The provider assumes the risk of filling at the selected stop level during a gap or sharp move. Providers may charge a premium, require a minimum distance from the current market, or limit the feature to particular instruments and account types.
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