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.

Guaranteed stops: does your broker offer them, and at what cost? — risk-reward diagram
A risk-reward ratio of 1 to 2

Do you use them?

  • the broker and the premium structure
  • when you find them worth paying for
  • the gap that made you consider them
Guaranteed stops: does your broker offer them, and at what cost? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The weekend gaps guide explains the risk they insure against.

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