In short
- A GSLO guarantees your exit price, even if the market gaps.
- You usually pay a premium, often only if it's triggered.
- It must be set a minimum distance from the current price.
Normal stop vs guaranteed stop
A normal stop-loss becomes a market order when your level is reached. In fast or gapping markets — after weekend news, a surprise rate decision or a political shock — the next available price can be far beyond your stop. That difference is slippage.
A guaranteed stop-loss order closes your position at exactly the level you set, regardless of gaps. The broker takes on the slippage risk, which is why it charges for it.
| Normal stop-loss | Guaranteed stop-loss | |
|---|---|---|
| Exit price | Next available price (can slip) | Exactly your level |
| Cost | Free | Premium (often only if triggered) |
| Placement | Any distance | Minimum distance from price |
| Availability | All brokers and platforms | Selected brokers and markets |
Example
You buy GBP/USD at £5 per point with a stop 50 points below. Over the weekend, unexpected news causes the market to open 120 points lower.
- Normal stop: closed at the opening price — a 120-point loss, £600.
- Guaranteed stop: closed at your level — a 50-point loss, £250, plus the premium.
When a GSLO is worth it
- Holding positions over weekends or major events
- Trading volatile markets prone to gaps
- Small accounts where one large gap would be damaging
For short-term trades in liquid hours on major pairs, a normal stop is usually enough and the premium may not be worth paying.
Remember
FCA negative balance protection means retail clients can't lose more than their account balance, but a gap can still wipe out much of it. A guaranteed stop puts a precise ceiling on the loss for each trade.
How brokers charge for guaranteed stops
- Premium on trigger: a fee, often a set number of points multiplied by your stake, charged only if the guaranteed stop is hit.
- Wider spread: some providers add the cost to the spread on positions with a guaranteed stop.
- Minimum distance: the stop must be placed at least a set distance from the current price, which varies by market and volatility.
Read the broker's market information sheet for each instrument before relying on a guaranteed stop.
Other order types worth knowing
| Order | What it does |
|---|---|
| Stop-loss | Closes at the next available price once your level is hit |
| Trailing stop | Moves with price in your favour by a set distance, locking in profit |
| Limit (take-profit) | Closes the trade when your profit target is reached |
| Guaranteed stop | Closes at exactly your level, for a premium |
A simple rule of thumb
Ask: "If this market opened 100 points against me tomorrow, could I accept the loss?" If the answer is no — because the position is large relative to your account or you're holding through a major event — a guaranteed stop, or a smaller position, is worth considering.
Frequently asked questions
Do all brokers offer guaranteed stops?
No. Guaranteed stops are mainly offered by spread betting and CFD brokers with their own platforms, and not always on MetaTrader.
Do I pay for a guaranteed stop if it isn't triggered?
At most brokers the premium is only charged if the guaranteed stop is triggered, though some build the cost into a wider spread. Check the broker's terms.
Can I move a guaranteed stop?
Usually yes, as long as it stays at least the minimum distance from the current price.
CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading these products. You should consider whether you understand how they work and whether you can afford to take the high risk of losing your money.