Guaranteed stops: does your broker offer them, and at what cost?
A guaranteed stop closes your position at the specified price regardless of gaps — for a premium, and only at some brokers. The cost-benefit is worth discussing.
Do you use them?
- the broker and the premium structure
- when you find them worth paying for
- the gap that made you consider them
The weekend gaps guide explains the risk they insure against.
Background: Weekend gaps: why prices jump when the forex market reopens
Currencies stop trading on Friday evening, but the news doesn't. What happens to your positions and stops when the market reopens at a different price.
What is a weekend gap in forex?
A difference between Friday's closing price and the first price when the market reopens on Sunday, caused by news or events over the weekend.
Will my stop-loss protect me from a gap?
Not fully. A standard stop is triggered when the market reopens and fills at the first available price, which can be beyond the stop. Guaranteed stops, where offered, avoid this for a fee.
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