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General Forex Discussion
Guaranteed stop loss
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[QUOTE="Enivid, post: 98857, member: 1"] There are two ways a stop-loss order can be guaranteed in Forex trading: [LIST=1] [*]A bucket shop broker. If your broker is not doing anything with your trade but is acting instead as a house in a casino, there is no risk nor any loss for it to execute your SL at a guaranteed level. In case a normal broker is acting as a market maker or just routes the trade through some ECN, it will incur loss if it executes your SL at a better-than-market price. [*]Insurance policy. I am not sure that any Forex brokers offer such a service, but it is a potentially interesting option for many traders. Traders would pay some fee (depending on the market volatility) to get a guaranteed stop-loss execution. A broker would incur loss from non-market SL prices, but would also be compensated by the insurance fees. [/LIST] [/QUOTE]
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