How to Use GSLOs to Trade CFDs

It can be frustrating to miss out on potential trading profit when the price target has been missed due to slippage or gapping. However, this can be avoided with a guaranteed stop-loss order (GSLO) since it will identify the trader's price target and execute the trade. GSLO is perhaps one of the most effective measures to employ when CFD trading since it can help traders achieve their price level.

What Is a Guaranteed Stop-Loss Order?

GSLOs function almost entirely like stop-loss orders—the difference is that GSLOs will close you out of a position at the exact price you specify for a premium charge, while a stop loss may not result in your intended price because of slippage or gapping. The former refers to the expected price of a trade and the price when the trade is executed, while the latter happens when the price of a security opens above or below the previous session's close with zero trading activity in between.

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Trading CFDs With Guaranteed Stop-Loss Order

When you are participating in CFD trading and you wish to utilize GSLO, all you will need to do is add the GSLO tool to your order on the trading platform. Depending on what instrument you are trading, you can pick either the price or the number of pips to trigger the trade.

For example, if you are trading with the price of ABC 123 Inc., and you want to get out of your position at $13.49 during a day of high trading volumes, you can turn on your GSLO and insert the exact price you desire. That's it.