In plain English
What Guaranteed stop-loss means
A guaranteed stop-loss adds a broker guarantee to the normal stop-loss idea. If the market jumps past the stop level, the broker rather than the client absorbs the slippage defined by the product terms. Availability, pricing, and cancellation rules vary by firm and instrument.
Why it matters
This order type is relevant when price gaps are a concern, such as around major news or over weekends. The guarantee can cap execution risk on the protected position, but it does not remove all trading risk and it does not eliminate the possibility of losses elsewhere in the account.
Example
If you are long GBP/USD at 1.2600 and place a guaranteed stop-loss at 1.2550, the broker promises to exit you at 1.2550 even if the market gaps to 1.2520. Any premium or conditions attached are product-specific.
Quick answers
Common questions
Does a guaranteed stop-loss eliminate all loss risk?+
No. It can define the exit price for the protected trade, but it does not remove broader account, platform, or counterparty risk.
Are guaranteed stop-loss orders free?+
Usually not. Brokers often charge a premium or adjust conditions to offer the guarantee.
Sources