Trading with Guaranteed
Stop Loss Orders (GSLOs)

Guaranteed Stop Loss Orders guarantee to close your trade at the exact trigger value you specify.

See key features and examples of how to use GSLOs below.

Key features

GSLOs are a great way to protect your funds from slippage or gapping, caused by unexpected market movements.
Key features include:

Guaranteed Closeout

Your trade is guaranteed to close at the price you set up front, making it limited-risk.

Free to place

GSLOs are free to place and you’ll only be charged a small premium if the GSLO level is reached.

Lower margin

Trading with a guaranteed stop in place means you’ll be able trade with lower margin than normal.

Amendments

You can amend your guaranteed stop during market hours without incurring additional fees.

Minimum Distance

Order levels must be placed at a minimum distance from the current quoted price.

Availability

Offered on more than 4,000 markets, GSLOs provide a cost-effective method of managing your risk.

What are the costs involved?

Stop premium

If your trade reaches the guaranteed stop level and the GSLO is triggered, you’ll be charged a small premium to cover the guaranteed closeout. This is known as the ‘stop premium’ and varies by market. The stop premium is calculated as:

Trade Size x Stop Premium

Trade Size is the size of the position (expressed as the no. of contracts or stake size) x the value of each contract (expressed per point of movement)

For example, if you bought 2 Wall Street CFDs (where the stop premium is 2x quantity of CFDs/stake) and placed a GSLO, then your stop premium would be 2 x 2 = $4. You would only be charged this amount if your stop was triggered. You can see the stop premiums on our most popular markets below.

Margin requirement

Guaranteed Stop Loss Orders enable you to trade with a lower margin requirement than you would with a normal position, as you determine your maximum risk when setting your trade size and GSLO level.

When trading using GSLOs, margin is calculated as follows:

Trade Size x Stop Distance x 1.1

Stop distance is the distance between the opening price and the stop price; the additional 1.1 is a regulatory requirement

For example, if you bought 2 Wall Street CFDs at an opening price of 24200 and set a GSLO at 20300, then your stop distance would be 20420 – 23000 = 120. The total margin requirement for placing the trade would be 2 x 120 x 1.1 = $264.

Example of a GSLO trade

  • You believe the Wall Street market price is going to rise, so you buy 2 Wall Street CFDs with an opening price of 20420.

    You place a Guaranteed Stop at 20300, which means the maximum loss on the trade would be (20420 - 20300) x 2 = $240.

  • The stop premium for Wall Street is 2x the quantity of CFDs and would therefore be 2 x 2 = $4 if your GSLO was triggered.
  • The required margin is calculated as follows:

    Trade Size x Stop Distance x 1.1

    In this example, your margin requirement would be: 2 x 120 x 1.1 = $264.

  • As a result of high volatility, the price of the Wall Street Index moves against you and unexpectedly drops from 20420 to 20259.
  • Despite market gapping, your trade closes automatically at your specified GSLO price of 20300.

    Your total loss on the trade is therefore $240 (maximum risk) + $4 (stop premium) = $244

    If you had used a standard stop, then your position would have closed at 20259 and resulted in a loss of $322.