What is a guaranteed stop-loss?

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A guaranteed stop-loss order (GSLO) is a risk management tool offered by some brokers, including Capital.com, to protect traders from significant losses in volatile markets or during times when price gaps occur. It ensures that a trade will be closed at a specific price level set by the trader, regardless of any adverse market conditions or price gaps. Therefore, your loss never exceeds the predicted level.

Is there a charge for a guaranteed stop-loss?

A GSLO fee is only charged if the GSLO is triggered. The GSLO closes the trade at exactly the price level you specify, with no risk of gapping or slippage. Since we take on this risk for you, we charge an industry-standard fee for the GSLO’s use. You can see the GSLO fee on the deal ticket before placing your trade, once you’ve selected a GSLO.

How does a guaranteed stop-loss work?

1. When you place a GSLO, you specify a specific price level at which you want your trade to be closed if the market moves against you. This is the price level at which the GSLO will be triggered.

2. Unlike a standard non-guaranteed stop-loss, which may be subject to slippage if the market gaps or moves rapidly, a GSLO ensures the execution of your trade is at the exact price you set, no matter what happens in the market.

Using a GSLO can provide peace of mind for traders who want to limit their potential losses and have precise control over their risk management.

Please note that GSLOs are not available on 1X accounts.

How is the guaranteed stop-loss fee calculated?

The guaranteed stop loss fee is calculated by multiplying three components: guaranteed stop premium (in percentage), position open price and quantity.

The formula is as follows:
GSL fee = GSL premium * position open price * quantity.

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