Our new Guaranteed Stop Loss Orders
- How has the GSLO functionality changed?
- How does this benefit my trading?
- I have already paid a GSLO premium what happens to this charge?
- How much does a Guaranteed Stop Loss Order cost?
- How do I place a GSLO?
- Can I change my GSLO after making a trade?
- Can I add a GSLO to an existing position?
- Can I cancel a GSLO?
- What is a GSLO?
- How does a Guaranteed Stop Loss Order work?
- How does using a GSLO fit into my trading plan?
1. How has the GSLO functionality changed?
From October 7th there will no longer be an upfront charge for attaching a Guaranteed Stop Loss Order (GSLO) to your market order and you will only be charged if your GSLO is triggered.
We have also dramatically increased the number of markets covered by our GSLOs. Our expanded Guaranteed Stop Loss Order offering provides a more cost effective way to manage your risk and now covers over 4,500 global markets.
Below are some of the most heavily traded markets at City Index which are now all covered by our new GSLO functionality. You can view full GSLO details on individual markets by accessing the market information sheet in platform. The minimum distance required on our new GSLO offering gives you more control to set your own acceptable levels of risk.
|Some of our popular markets||New premiums (charged upon trigger)||Minimum distance|
|ASX 200|| 3 x quantity of CFDs charged in base currency
|Germany 30|| 3 x quantity of CFDs charged in base currency
|France 40|| 2 x quantity of CFDs charged in base currency
|Wall Street|| 4 x quantity of CFDs charged in base currency
|EUR/GBP|| 4 x quantity of CFDs charged in base currency
|EUR/USD|| 4 x quantity of CFDs charged in base currency
|GBP/USD|| 4 x quantity of CFDs charged in base currency
|USD/JPY|| 4 x quantity of CFDs charged in base currency
|Apple|| 0.25% of notional trade value
|Commonwealth Bank|| 0.25% of notional trade value
|Deutsche Bank|| 0.25% of notional trade value
|Rio Tinto|| 0.25% of notional trade value
|Gold|| 5 x quantity of CFDs charged in base currency
|Silver|| 2 x quantity of CFDs charged in base currency
2. How does this benefit my trading?
Our new GSLOs are a cost effective way of managing your risk and with no premium to pay upfront you’ll have added peace of mind during times of volatility. You can attach a Guaranteed Stop Loss Order to a position in the knowledge that you will only pay a premium should the stop be triggered, saving you money.
Our expanded GSLO offering now also covers more markets than ever before including major Equities, Indices, FX and Commodities giving you more protection on a wider range of markets. If you already have an open position, you can add a new GSLO via the deal ticket in platform and will still only pay a premium if your GSLO is triggered.
Guaranteed Stop Losses are most useful:
- If you're trading in volatile markets
- If you don't want to risk more than your initial deposit
- If the market is prone to gapping (remember, markets can gap both ways)
3. I have already paid a GSLO premium, what happens to this charge?
Our expanded GSLO offering will be launched on October 7th, 2017 and we will refund any GSLO premium already paid on this date. You will be notified by email once your GSLO refund has been paid and it will appear on your next statement.
4. How much does a Guaranteed Stop Loss Order cost?
The cost of your Guaranteed Stop Loss Order is based on the size of the position you wish to cover. You will only pay a premium if your GSLO is triggered and this will appear on your next statement as a separate charge. The charge or premium you pay is calculated differently for different markets either as:
Number of points x quantity of your position (For example Indices like the ASX 200 or Dax 100)
Percentage x notional trade value (For example Equities like Commonwealth Bank)
As a guide, charges for the following popular markets are currently:
- Dax 100 CFD: 3x quantity of CFDs charged in base currency
- EUR/USD (per 0.0001) CFD: 4 x quantity of CFDs charged in base currency
- Commonwealth Bank share CFD = 0.25% of notional trade value
5. How do I place a GSLO?
To place a Guaranteed Stop Loss Order on any market, open the deal ticket in platform and selection the direction of the trade you would like to place, either Buy or Sell. Next, enter the quantity of your order, you can do this by entering a figure manually or by selecting a pre-determined quantity using the drop down menu option.
To place your Guaranteed Stop Loss Order, open the Stop & Limits tab and select the Stop checkbox, then fill in the price and quantity to determine the level at which your position will close out. Remember to tick the guaranteed checkbox.
Further options in the deal ticket allow you to add a trailing stop and a limit on your order. Once you have filled in all of the information for your stop, click the Place Trade Button and your position will be opened with a GSLO attached.
6. Can I change my GSLO after making a trade?
Yes, you can change the level of a GSLO after placing a trade by opening your position and amending the price or quantity at which your Guaranteed Stop will be triggered. You will not be charged for amending a GSLO on an open trade.
7. Can I add a GSLO to an existing position?
If you have a current position that you would like to add a GSLO to, visit the open position tab in platform, open your trade and select the Stops & Limits section within the deal ticket then select the price and quantity at which you would like your Guaranteed Stop to be triggered. There is no additional charge for adding a GSLO to an open trade. Note: The market will need to be open for you to add a GSLO.
8. Can I cancel a GSLO?
Yes, you can cancel any Guaranteed Stop Loss Order on your account at any time, free of charge.
Find out more about how GSLOs work
9. What is a GSLO?
A Guaranteed Stop Loss Order or GSLO is an order that closes your trade at an exact level chosen by you, regardless of market gapping. A regular Stop Loss may not cover you in times of heightened volatility where markets can “gap” between one price and the next without trading at the prices in between.
At City Index you can add a Guaranteed Stop Loss to a wide range of over 4,500 markets and will only pay a premium for added protection if your GSLO is triggered. You can read more about GSLOs at City Index in our dedicated Trading Academy section.
10. How does a Guaranteed Stop Loss Order work?
In the example below imagine you had bought 2 Wall Street Index CFDs at 20420 and chosen 20300 as your maximum acceptable loss level which is where you decide to place your Guaranteed Stop Loss. If triggered this would equate to a $240 loss allowance (20420 – 20300) x 2.
The GSLO premium for Wall Street is 4 x the quantity of CFDs or stake charged in the base currency of your account. In this case the premium is calculated as 4 x 2 = $8 and would be charged only if your GSLO was triggered. Two days after you have placed your order, the price of the Wall Street Index suddenly drops lower from 20420 to 20259.
With a GSLO in place, your trade has been closed out at the pre-determined level of 20300 for a total loss of $248 ($240 loss on your position + $8 premium on GSLO when triggered) preventing further loss as a result of market gapping. If you had placed a normal Stop Loss on your position, your losses would have been far greater as you would only have been closed out at the next available price which was 20259.
(20420 – 20259) x2 = $322 total loss
11. How does using a GSLO fit into my trading plan?
Risk management is a crucial part of any trading strategy, especially when you are a less experienced trader. Trading the financial markets is similar to running a business and ensuring you have the right protection against losses is fundamental to ensuring you don’t loss too much too quickly.
GSLOs are particularly beneficial in volatile markets or at times of extreme volatility where there is a risk of the markets gapping. They can also help ensure that you don’t risk more than your initial deposit by capping any potential loss at a risk level set by you.
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