Guaranteed Stop Loss (GSL)

MARKETS.COM, operated by Safecap Investments Limited, has activated a new risk management tool for all French clients, in accordance with the latest AMF Regulations. This involves the Guaranteed Stop Loss (GSL) functionality, which will be embedded in every new trading position opened.

What is Guaranteed Stop Loss (GSL)?

The Guaranteed Stop-Loss (GSL) works similarly to the Stop-Loss Order, with the main difference being that the GSL is immune to price gapping or market volatility.

With MARKETS.COM the GSL will be automatically set to the level of the initial margin used while opening the position.

Advantages of Guaranteed Stop Loss (GSL) with MARKETS.COM

  • Useful in extremely volatile markets, price slippage and market gapping.
  • You do not risk more than your initial investment.
  • The maximum risk per position is known in advance.
  • Reduces the need to monitor your position at all times.

Even with a GSL attached to your position, you can still set a Stop Loss and/or Take Profit, as described in our Order Execution Policy. In the event of Price Slippage or market gapping, such orders are not guaranteed to take effect at the price for which they are set. In such cases however, the loss will be strictly limited up to the amount of GSL.

Example of Guaranteed Stop Loss (GSL)

The current market price of EUR/USD is currently quoting at 1.18480/1.18500 and you decide to go long 1,000 units at 1.18500. The initial margin requirement for opening the position is 11.85 USD.  The system will therefore attach to your position a GSL at the same level of 11.85 USD.

Let’s say now that due to a major news announcement, the price of EURUSD suddenly drops to 1.17100. Since your position has a GSL attached, your positions will be closed with a loss of 11.85 USD.

If the GSL was not attached to your position, your trade would have closed at the next available price of 1.17100 which would result in a loss of 14 USD [(1.17100 – 1.18500)*1,000].

We advise you to visit our Investment Services Agreement and Order Execution Policy for further information.

CySEC (EU)

  • Client’s funds are kept in segregated bank accounts
  • FSCS Investor Compensation up to EUR20,000
  • Negative Balance Protection

Products

  • CFD
  • Share Dealing
  • Quantranks

Markets.com, operated by Safecap Investments Limited (“Safecap”) Regulated by CySEC under License no. 092/08 and FSCA under Licence no. 43906.

FSC (GLOBAL)

  • Clients’ funds kept in segregated bank accounts
  • Electronic Verification
  • Negative Balance Protection

Products

  • CFD
  • Strategy Builder

Markets.com, operated by TradeTech Markets (BVI) Limited (“TTMBVI”) Regulated by the BVI Financial Services Commission (‘FSC’) under licence no. SIBA/L/14/1067.

FCA (UK)

  • Client’s funds are kept in segregated bank accounts
  • FSCS Investor Compensation up to GBP85,000
    *depending on criteria and eligibility
  • Negative Balance Protection

Products

  • CFD
  • Spread Bets
  • Strategy Builder

Markets.com operated by TradeTech Alpha Limited (“TTA”) Regulated by the Financial Conduct Authority (“FCA”) under licence number 607305.

ASIC (AU)

  • Clients’ funds kept in segregated bank accounts
  • Electronic Verification
  • Negative Balance Protection

Products

  • CFD

Markets.com, operated by Tradetech Markets (Australia) Pty Limited (‘TTMAU”) Holds Australian Financial Services Licence no. 424008 and is regulated in the provision of financial services by the Australian Securities and Investments Commission (“ASIC”).

FSCA (ZA)

  • Clients’ funds kept in segregated bank accounts
  • Negative Balance Protection

Products

  • CFD
  • Strategy Builder

Markets.com, operated by TradeTech Markets (South Africa) (Pty) Limited (“TTMSA”) Regulated by Financial Sector Conduct Authority (‘FSCA’) under the licence no. 46860.

Selecting one of these regulators will display the corresponding information across the entire website. If you would like to display information for a different regulator, please select it. For more information click here.