Guaranteed Stops
In addition to our full range of Stop and Limit Orders, we also offer Guaranteed Stops to help you put an absolute limit on your risk.
When you want to make certain that you can lose no more than a given amount, however wildly the market may move, a Guaranteed Stop is the tool for you.
By placing a Guaranteed Stop when you open your position you create a price level at which the position will be closed, even if the market moves straight through this level.
Low-cost premium for risk protection
When you open your position you specify how many points away from the opening level you want to set your Guaranteed Stop. There is a premium for placing a Guaranteed Stop, in the form of an extra spread added to your opening price. For all major pairs the premium is set at just 3 pips.
So your maximum possible loss is known at the outset. And because your risk is now protected, we lower your margin requirement on the position, giving you a greater degree of leverage.
The margin requirement when you have a Guaranteed Stop in place is equal to the amount which would be lost if the Stop were triggered (although you may also have to cover interest adjustments).
To see how a Guaranteed Stop works in practice please read our Guaranteed Stop Example.
Please remember that Forex Trading carries substantial risk and is not suitable for all investors.