During certain market conditions (in a volatile market, for example) your Stop Loss Order might not be executed at your exact preferred rate (price). This feature will force the position to close at your chosen rate (price) even if the market price surpasses it. Once your stated level is reached, the position will automatically close. This feature is not available for all instruments, and a fee is charged via a wider spread.
Guaranteed Stop Order features:
To learn how the Guaranteed Stop works, please follow this example:
Alphabet’s Buy/Sell rates are $500/$498.
You buy 10 shares CFDs of Alphabet. Let’s say that the Guaranteed Stop Order wider spread is $10.
You place a Guaranteed Stop at the Sell rate of $450.
Alphabet’s Sell rate drops to $400 → the position will be closed at $450 and not at $400.
P&L with Guaranteed Stop: ($450 - $500)*10 - $10 = loss of $510.
P&L without Guaranteed stop: ($400 - $500)*10 = loss of $1000.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.