A guaranteed stop loss is a special type of What are value stocks? A value company is a company that app... More can rise or fall dramatically.that protects from that can happen between trading periods when the
When a trader sets this order, he or she is telling a What is a trader? A trader is a person who buys and sells... More avoid making excessive losses and lock in profit.at which point to buy or sell a . This can help the
To learn more about how and where to place A stop loss is an order that automatically closes your trad... More, read our lesson:
Differentiation from regular stop losses
Regular stop loss orders are not always triggered when theare closed. During these closed periods, it is possible for unexpected events, such as terrorist attacks or natural disasters, to send price soaring higher or lower. When the markets open again, the market has ‘gapped’, stop losses have been leap-frogged and can be left vulnerable to huge losses.
Not all brokers offer guaranteed stop losses. However, those who do offer these special orders usually charge a premium on the What are trading spreads? In online trading, spread is the d... More in order to keep the position open over the What are value stocks? A value company is a company that app... More close. It is also likely that the What is an online broker? In online trading, a broker is a ... More would require a higher What is margin? In online trading, Margin is the amount a tr... More level on the account. This may mean that you have to deposit extra funds into your account.