Guaranteed stops

With the guaranteed stop-loss facility, your position is closed at a level pre-selected by you, despite dramatic market movements. Guaranteed stops carry a small premium.

Example of a guaranteed stop:

• You believe ABC Corporation will strengthen from its current level of 350.00, but you want to be sure of your maximum downside on the trade.
• You place a guaranteed stop order to sell 1,000 ABC Corporation CFDs at 320.00
• To do so, you will need to pay a premium of 2 points*
• So to buy, the price of ABC Corporation is 353.00. The market begins trading lower and deals at 321.00, then ‘gaps’. This means that the next available bid price you can sell at is 312.00
• In the case of a standard stop, the order would be executed at 312.00. However, because you have guaranteed your stop loss and despite the gap in the market, NatWest Index will execute the order at 320.00.

*The premium paid depends on the instrument you trade upon. Please refer to our Rates Schedule.