Guaranteed Stop Loss
What is Guaranteed Stop Loss in Forex?Guaranteed Stop Loss (GSL) — is a regular stop loss with extra guarantee — a guarantee that Stop Loss order will be executed under any market conditions.
Forex Market is known to have times of high volatility (more so during important economical/political events), and with volatility come price slippage and market gaps.
Both events will result in regular Stop Losses caught in between being carried over to the next available price and executed at a less favorable rate = resulting in higher losses.
Guaranteed Stop Loss stands on guard of that and "insures" there will be Stop Loss executed at the exact price level set by a Forex trader.
Guaranteed Stop Loss features
- Guaranteed Stop Loss comes with attached premium to be paid for a "guarantee"
- As a rule, the premium is only paid after the Stop is triggered
- Not all Forex brokers offer Guaranteed Stop Loss, as it comes with extra risks to brokers themselves
- Only Market Maker Forex brokers are able to offer Guaranteed Stop Losses as part of their trading conditions
Who would benefit from a Guaranteed Stop Loss?
- All Forex traders who trade with higher leverage would benefit from extra insurance the GSL provides
- All Forex traders who cannot monitor traders often
- All Forex traders who value a peace of mind knowing their Stops are hard set & guaranteed