Guaranteed Stop
A stop-loss order that ensures a position is closed at the exact price specified, regardless of market volatility, slippage or gapping. Guaranteed stops are often free to attach, but brokers charge a premium if the order is triggered, reflecting the risk they take on.
Related terms
Stop-Loss Order
An order to buy or sell once a currency or security reaches a specified price, designed to limit a trader’s loss on a position. The trade is processed only if the chosen rate is reached, capping downside without the need to monitor the market constantly.
Read full definitionGapping
When the price of a security jumps to a new price not directly adjacent to the previous one, creating a gap between ticks on a price chart. Gapping often occurs when liquidity is low and the price is heavily affected by lighter trading.
Read full definitionControlled Risk
A position whose maximum possible loss is capped at a certain level, typically through a guaranteed stop-loss order, giving the trader full control of risk on the trade.
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Aggressive
A description of traders and/or price action acting with conviction.
Read full definitionArbitrage
The simultaneous buying and selling of the same currency in different markets to profit from small price differences. The strategy exploits temporary inefficiencies in FX markets.
Read full definitionAt Best
An instruction given to a dealer to buy or sell at the best rate that can be obtained at a specific time.
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An instruction given to a dealer to buy or sell at a specific price or better.
Read full definitionBroker
A third party coordinating the sale of financial securities between sellers and buyers. Exchanges only accept orders from their members, so traders and investors use brokers as intermediaries; brokers are compensated through commissions, fees or payment from the exchange.
Read full definitionBulls
Traders who expect prices to rise and who may be holding long positions.
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