Guaranteed Stop Loss Orders (GSLO) in OANDA Europe Limited

This FAQ contains the following information:

A guaranteed stop loss order (GSLO), like a stop-loss order, is set to close a trade once it reaches a specified price. The key difference between a traditional stop-loss order and a GSLO is that the price you specify is guaranteed. This means that even if there is slippage or a market gap, you will receive the specified price. If a GSLO is executed, you will pay a premium in exchange for this additional level of protection. The premium is different based on the instrument traded and is visible on the order window. For example, a trader may pay an additional 1 pip if the order is triggered. If the order is not triggered, then the premium is not charged.

When you open the order window, GSLO is selected by default for most assets. If you want to use a regular stop loss (SL) or trailing stop (TS) you can do so by selecting the drop down menu and choosing ‘Normal’.

You can place GSLOs on most instruments. You can check the order window on the platform to find out if the GSLO option is available on an instrument.

OANDA applies a different premium based on the instrument traded. You will only pay a premium if your GSLO is triggered. This will appear on your statements and activity history once your account is charged. Your GSLO premium will be displayed in pips on the order window prior to placing a trade.

OANDA may increase the minimum distance that a GSLO can be placed from the current market price ahead of expected spikes in market volatility (e.g. ahead of economic events).

Yes, during market hours and non-market hours you are able to modify an order that has a GSLO attached to it. Each instrument has a required minimum distance from the market price; this is displayed as minimum distance during order entry. However, there are specific conditions that need to be met in order to modify a GSLO:

1. During market hours:

The order can be modified but needs to satisfy minimum distance requirements.

2. During non-market hours:

The order can only be moved further away from the market price.

You can change the level of a GSLO after placing a trade by selecting the trade in your portfolio and modifying the price at which your GSLO will be triggered. Please note, you will not be charged for amending a GSLO which has not been triggered.

If you hold an open trade with a GSLO attached to it on an index CFD when dividend adjustments are applied, your GSLO will be adjusted to offset the effect of the dividend adjustment.

For example: if an index dividend adjustment moved down ten points, your GSLO would be adjusted ten points.

Yes, you can cancel a GSLO anytime once it is attached to a trade.

Your GSLO might be rejected for the following reasons:

Insufficient funds

You will not be able to open a trade and its associated GSLO if you do not have enough funds in your account to meet the margin requirements.

Minimum distance

Each instrument has a minimum distance requirement between the current market price and price of the associated GSLO. An instrument’s minimum distance level is detailed in the order window.

Minimum distance between multiple trades with a GSLO

If trading large trade sizes it is possible that your GSLO may be rejected due to it being in close proximity to another pending GSLO. These conditions vary by instrument and are linked to market conditions.

Adding GSLOs to hedged positions

It is not possible to add GSLOs to hedged trades (trades placed in opposite directions on the same instrument at the same time).

Your order has a combination of two or more types of stop loss orders: GSLO, TS or SL

Orders can only be submitted with one of the following order instructions: guaranteed stop loss order (GSLO), trailing stop (TS) or stop loss (SL).

MetaTrader platform?

GSLOs appear as normal stop losses on the MetaTrader platform interface. You will not be able to edit these orders on MetaTrader platform. Amending your GSLO is only possible on OANDA’s web-based, desktop and mobile applications.

You will not be able to see GSLOs on our partner platforms.

You open a one unit long CFD on the UK 100 Index at a unit price of £7000, and place your GSLO 50 points away at £6950 as you are concerned about market volatility. The premium being charged, if the GSLO is triggered, is 2 pips. In this example, 1 pip is equal to £1 when you trade 1 unit of this CFD.

If the index gaps down 100 points to £6900, your position would automatically be closed out at your GSLO level of 6950 and you will realise a loss of:

(order size x stop distance) +(order size x premium fee) = (1 x 50) + (1x2) = £52.00

If you hadn't placed the GSLO on your position, but instead used a standard SL at £6950, your trade would have closed at £6900 resulting in a loss of £100.

For professional clients risk management options may provide benefits such as reduced margin requirement, as explained in the following table:

Margin rates

MarginClosedThe required collateral to open and maintain a leveraged position. with guaranteed stop loss order (GSLO) Margin with a stop loss order (SLO) Margin without SLO or GSLO
Lesser of: (i) sum of amount at risk plus10% of amount at risk plus premium fees; or (ii) standard margin Lesser of: sum of amount at risk and 30% of standard margin or standard margin. Standard margin. For specific rates, review our margin rates.

For detailed explanation, refer to the following examples:

Guaranteed stops for professional clients

When using a GSLO, your margin required will be limited to the amount at risk plus 10% of the amount at risk, plus any premiums. For example, if you place a trade of EUR/GBP for 100,000 units, your margin required would typically be £5000 (5%). If you add a GSLO to the trade, 20 pips away from the market, your margin required would be reduced to approximately £230 (£200 risk amount + 10% of £200 + 1 pip premium). In this example, 1 pip is equal to £10 when you trade 100,000 units of this instrument.

If your GLSO margin amount is greater than the standard margin requirements (because your stop-loss is far away for example), then the standard margin requirements would apply instead. In the above example, if your margin when using a GSLO was greater than £5000, then your margin would be capped at £5000.

Stop losses and trailing stops for professional clients

When using a Trailing Stop (“TS”) or Stop Loss (“SL”), your margin required will be limited to the amount at risk plus 30% of the standard margin. For example, if you place a trade of EUR/GBP for 100,000 units with a SL or TS 20 pips away from the market, your margin required would be £1700 (£200+ (30% x £5000)).

If your TS/SL margin amount is greater than the standard margin requirements (because your stop-loss is far away for example), then the standard margin requirements would apply instead. In the above example, if your margin when using a TS/SL was greater than £5000, then your margin would be capped at £5000.

  1. When professional clients successfully modify a GSLO, it will impact the amount of margin required to hold the position. This change will be shown on the order window under Margin Used.

  2. Professional clients can cancel a GSLO any time. However, our system may prevent them from cancelling it, if doing so would use up their available margin.

  3. GSLO and SLO margin rates for professional clients are either lower than or the same as standard margin rates. However, due to limitations on the MT4 platform, orders entered on MT4 to open a position with a stop loss attached will be charged the standard margin rates at first instance. After the order has been executed, the difference between the standard margin rates and the applicable GSLO/SLO margin rates will be taken into account, and the final revised margin requirements will be reflected accordingly. In light of the above, there is a possibility for orders with a stop loss attached to be rejected on MT4 due to insufficient margin.