Guaranteed stop loss?

[rom1]

Hi,

I was wondering, are guaranteed stop losses only available on spread betting platforms? I'd read a lot about the importance of stop-losses, but also that there is always a risk of slippage.

I'm not quite sure how a guaranteed stop loss could in practise be completely guaranteed, nor how expensive it is, but am foremost interested in knowing if conventional forex platforms offer this service (as I have seen it on some spread betting platforms, but not on exclusively forex trading ones).

any insights would be greatly appreciated!

 

[timsk]

. . .I'm not quite sure how a guaranteed stop loss could in practise be completely guaranteed . . .

Hi rom1,
Welcome to T2W.

I'm pretty sure that the concept of guaranteed stop losses is an invention of the spread betting industry, used as a marketing tool to attract new business. It does what it says on the tin, and guarantees to close your trade at a predetermined loss - come what may. And yes, you pay a premium for the privilege, just as you would with an insurance policy which, in effect, is what this facility is. The SB firm can do this as they are a market maker, i.e. they set their own prices and take the other side of your trade.

Regarding forex brokers, I can't help I'm afraid as I don't trade currencies and have never had an account with a forex broker. That said, your question is very simple to answer. Find a broker you're interested in and look at their website. If they offer guaranteed stop losses - they'll be sure to shout about it from the rooftops. Failing that, contact them and ask 'em!
Tim.

 

[itspossible]

Hi,

I was wondering, are guaranteed stop losses only available on spread betting platforms? I'd read a lot about the importance of stop-losses, but also that there is always a risk of slippage.

I'm not quite sure how a guaranteed stop loss could in practise be completely guaranteed, nor how expensive it is, but am foremost interested in knowing if conventional forex platforms offer this service (as I have seen it on some spread betting platforms, but not on exclusively forex trading ones).

any insights would be greatly appreciated!

If they dont offer just go for negative balance protection and trade smallish.