Guaranteed stop losses are not found in any market sector other
than spread betting and even then there are only a limited number
of companies who currently offer them. Guaranteed stops used to be
a very popular way for clients to ensure they knew exactly what
their downside risk was for each trade and although there was a
charge for placing these stops (most commonly the spread of the
original trade was doubled) this added security encouraged traders
to use this service. Since the introduction of 24 hour trading the
number of traders using guaranteed stops has reduced dramatically
with most traders now feeling that the added spread premium is an
unnecessary cost and that the risks of finding themselves in a
position where their non-guaranteed stop loss has not been executed
at a price within a tolerable range are minimal.
It remains to be seen if the spread firms will continue to offer
this service in the future.