Forex guaranteed stop loss

In Forex trading, a guaranteed stop loss is a service provided by brokers that ensures the closing of an opened order at the price specified by the trader. With this feature, the broker assumes the risk, protecting the trader from potential losses during high volatility when the stop order may not be executed. It is essential to choose a regulated broker with real market access when opting for this service. Below is a list of the most reliable and regulated Forex brokers that offer guaranteed stop loss, making trading easier for you.

8.10

easyMarkets read review

MT4MT5Copy tradingHigh leverage

Regulations

ASIC, CySEC, FSA Seychelles +1 more

Platforms

MT4, MT5, TradingView +1 more

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While the guaranteed stop loss may seem appealing, there are several cons that every trader should be aware of before applying for this service. Firstly, brokers charge fees or premiums for the service, and these can vary depending on the broker, potentially making trading more costly and affecting trading performance. Additionally, there is a risk of dealing with a B-book broker, which means traders won't have access to real markets. Therefore, it's crucial to opt for regulated Forex brokers with guaranteed stop loss with a proven track record in the market to avoid scams and fraud.

FAQs about Guaranteed stop loss

Is a stop-loss order guaranteed?

No, the stop loss is triggered normally during stable markets, but during high volatility scenarios, the price can surpass the stop loss without touching it, making the trader lose more than their stop loss.

What does guaranteed stop-loss mean?

Guaranteed stop loss is a service some Forex brokers offer their customers guaranteeing the closure of the open orders at the trader’s specified price. With guaranteed stop loss the broker takes risks on the behalf of a trader and charges a premium in return.

What is the difference between normal and guaranteed stop-loss?

Normal stop loss is not guaranteed to close order when the price is hit as during high volatility markets the price can pass the stop loss without triggering it resulting in larger losses than what the trader specified. With guaranteed stop loss the broker takes these risks on itself for a small premium.