Guaranteed Stop Loss Orders

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Financial Spreads: Spread Betting and CFD Trading

Losses can exceed deposits
Guaranteed Stop Loss

Guaranteed Stop Loss

To help with your risk management, Financial Spreads lets you add orders to your spread bets and CFDs.

We automatically add a normal Stop Loss order to all new opening trades. Note, if you would like to opt out of these, simply ask Customer Support to update the settings on your account.

For added security, you can make your normal Stop a Guaranteed Stop Loss order instead.

Why Use a Guaranteed Stop Loss Order?

A Guaranteed Stop Loss will help protect your downside when the markets gap, or slip, between price levels.

Note that gaps are more likely to occur with volatile markets, illiquid markets or between the time that a market closes and re-opens.

E.g. our UK 100 market could close on a Friday at 6,600 and then re-open on the following Monday at 6,450. If so, the market will not have at traded all the levels from 6,600 down to 6,450. It will simply have 'gapped' or 'slipped' from 6,600 straight to 6,450.

Therefore any normal Stop Loss orders set to be executed between 6,600 and 6,450 would actually be executed at 6,450.

A Guaranteed Stop Loss ensures that your order is executed at the level you specified irrespective of any market gaps.

Example of How a Guaranteed Stop Loss Order Works

As mentioned above, we already add a normal Stop Loss to your trades.

Again, a normal Stop Loss order does not guarantee the level where your trade will be closed if the market gaps.

For example, let's say that you buy the UK 100 at 6,800, and you set your Stop Loss at 6,750. Should the UK index 'gap' and fall straight to 6,710, then your Stop Loss would close your trade at 6,710, rather than at 6,750.

This is because the stock market index didn't trade at 6,750. The next price that the market traded at was 6,710 and therefore your position would be closed at 6,710.

However, if you used a Guaranteed Stop Loss order and set that at 6,750 then with the same market movement your order would be filled at 6,750 rather that 6,710.

So even though a Guaranteed Stop comes with a small extra cost, it can save you money.

With this example it would have saved you 40 points (minus 3 points for the cost of the order on a market like the UK 100).

Guaranteed Stop Loss

The Cost of a Guaranteed Stop

Note that as Guaranteed Stop Orders are a form of insurance against market gaps they come at a small premium:

Guaranteed Stops Charges and Minimum Distances

Stock Market IndicesCharge (Stake x)Minimum Guaranteed Stop Loss Distance
UK 100 (Rolling and Future) 3 1.00%
Germany 30 (Rolling and Future) 3 1.00%
France 40 (Rolling and Future) 3 1.00%
Spain 35 (Rolling) 3 1.00%
Euro Stocks 50 (Rolling and Future) 3 1.00%
US SPX 500 (Rolling and Future) 3 1.00%
US Tech 100 (Rolling and Future) 3 1.00%
Wall Street (Rolling and Future) 3 1.00%
Japan 225 (Rolling) 3 1.00%
Australia 200 (Rolling) 3 1.00%
Hong Kong (Rolling) 3 1.00%
Index Differentials (Future) 3 1.00%

ForexCharge (Stake x)Minimum Guaranteed Stop Loss Distance
AUD/CAD 3 1.50%
AUD/CHF 3 1.50%
AUD/JPY 3 1.50%
AUD/NZD 3 1.50%
AUD/USD 3 1.50%
CAD/CHF 3 1.50%
CAD/JPY 3 1.50%
CHF/JPY 3 1.50%
EUR/AUD 3 1.50%
EUR/CAD 3 1.50%
EUR/CHF 3 1.50%
EUR/GBP 3 1.50%
EUR/HUF 10 3.00%
EUR/JPY 3 1.50%
EUR/NZD 3 1.50%
EUR/USD 3 1.50%
EUR/ZAR 10 3.00%
GBP/AUD 3 1.50%
GBP/CAD 3 1.50%
GBP/CHF 3 1.50%
GBP/JPY 3 1.50%
GBP/NZD 3 1.50%
GBP/USD 3 1.50%
GBP/ZAR 10 3.00%
NZD/CAD 3 1.50%
NZD/CHF 3 1.50%
NZD/JPY 3 1.50%
NZD/USD 3 1.50%
USD/CAD 3 1.50%
USD/CHF 3 1.50%
USD/HUF 10 3.00%
USD/JPY 3 1.50%

CommoditiesCharge (Stake x)Minimum Guaranteed Stop Loss Distance
Gold (Rolling) 5 1.50%
Silver (Rolling) 5 1.50%
Brent Crude Oil (Future) 3 1.50%
US Light Crude Oil (Future) 3 1.50%
Crude Oil Differentials 3 1.50%

SharesCharge (Stake x)Minimum Guaranteed Stop Loss Distance
UK Shares 0.30% 5.00%
US Shares 0.30% 5.00%
European Shares 0.50% 10.00%

Above data accurate as of 8 August 2016.

Example 1) A Guaranteed Stop order on gold costs 5 x your stake.

If you are trading £2 per point then the charge for a Guaranteed Stop on gold is 5 x £2 = £10.

Important, this is only charged if your Guaranteed Stop order is triggered. There is no charge if your order is not triggered.

Example 2) The Germany 30 has a Minimum Guaranteed Stop Loss Distance of 1% so if the Germany 30 is trading at 10,600 then the closest you can put your Guaranteed Stop to your trade is 1% away, i.e. 106pts away.

Again, the platform will calculate this for you.

How to Add a Guaranteed Stop Order

If a market is enabled for Guaranteed Stops then you can add one via the trade ticket.
  1. Open a Trade Ticket
  2. Click "Buy" or "Sell"
  3. Click the "Stop / Limit" button
  4. Tick "Stop / Trailing"
  5. Tick "Guarantee" (shown in the red box in the above screenshot)
Your Stop Loss will now be a Guaranteed Stop.

As with a normal Stop Loss you can still update the level of your Stop.

How to Add a Guaranteed Stop Order to an Order to Open

If you are setting up an Order to Open, i.e. setting an order to open a trade when the market hits a certain level, then you can also add a Guaranteed Stop to it.
  1. Click on the "Order" button to open the Order Ticket
  2. Click "Buy" or "Sell"
  3. Click the "Stop / Limit" button
  4. Tick "Stop"
  5. Tick "Guarantee"
If you now place your Order to Open and it is executed then the Stop Loss on this trade will be a Guaranteed Stop.

Guaranteed Stop Order Restrictions

Note that:
Guaranteed Stop Allowed?

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