What is a guaranteed stop?
A guaranteed stop is a type of stop-loss that ensures your position is always closed at your pre-selected price. It is a common risk management tool, used to protect your trades from unnecessary losses during times of volatility.
It does this by removing any risk of slippage, which is when the price at which your order is executed does not match the price at which it was requested. By attaching a guaranteed stop, your broker is accepting the risk of slippage on your behalf. While many providers will charge upfront for a guaranteed stop, IG only charges you if it is triggered.
With IG, you can use guaranteed stops on spread betting or CFD positions by placing a stop on the deal ticket and ensuring you select ‘guaranteed stop’ in the drop-down.