cuts the cost of a guaranteed stop loss

Home > News > Reduces Guaranteed Stop Loss Charges has reduced the fees it charges for using guaranteed stop losses (GSL), giving clients a cheaper way to protect their positions from large market gaps. GSL spreads have been narrowed across four separate asset classes, Forex, Equity Indices, Commodities and individual stocks and shares.

Guaranteed stop-loss premiums

The fees or premiums charged for GSLs at have been reduced as follows:

  • Forex: the GSL charge is reduced from 0.10% to as low as 0.01% on major FX pairs
  • Indices: GSL charges come down from 0.1% to as low as 0.02% on major equity indices.
  • Commodities: GSL charges are reduced from 0.05% to 0.03%
  • Shares: GSL charges on the top 10 most traded equities are cut from 1.0% to 0.5%.

Traders will now also be able to view GSL charges within their deal ticket before committing to a trade.

Stop distance minimums has also looked at the minimum distances that GSLs can be placed away from the current market.

Minimum distances have been decreased for most commodities, indices, minor FX pairs and the top ten traded stocks.

However, they have been extended for major FX pairs and less popular stocks.

The firm has also increased the maximum distance a GSL can be placed away from the current market price, this level has now been set to 75% of that value.

What are guaranteed stop losses, and why use one?

Guaranteed stop losses are a form of trade insurance which fix the maximum loss a trader can incur on a trade.

A standard stop loss order is executed at the next best available price, once triggered.

However, in fast-moving markets or markets that don’t trade 24 hours a day and which can therefore gap overnight, standard stop loss orders can be subject to slippage.

A guaranteed stop loss is not subject to slippage, because the price at which the trade will be closed has been specified in advance, clients pay a premium or fee for that facility.

Using GSL means a trader can quantify their risk at the outset of the trade which could allow them to take on a larger trade size than they might normally trade or to limit their risk to a fixed sum of money.

Guaranteed stop losses are a useful backstop for traders in volatile or fast-moving markets or for those occasions when you can’t monitor a position but still want to be in the market.

They can be helpful for newbies and novice traders who want to tread carefully and limit their risk in each trade they make.

The cheaper GSLs they are to deploy the better.

They are not a total panacea, however, because there will still be debates about whether they should or shouldn’t have been triggered.

Scroll to Top