A spread betting stop-loss closes your bet when the market reaches a level you set. The loss is then the stop distance multiplied by your stake per point. A standard stop-loss fills at a worse level when the market gaps past it. A guaranteed stop-loss order fills at the stop level regardless of gapping. 8 of the 14 brokers we compare offer one.
Updated on 5 Sep 2026: the guaranteed-stops section now renders the yes/no roster for all ranked brokers and each provider's charging model from the data layer, replacing typed sentences that named four providers. IG's two published premiums are rendered, reversing a 2 September note that said no figure could be sourced; they come from IG's product-details pages (25 Aug 2026). The page now explains what leverage does to a stop and that a stop works long or short. The FAQ section gains structured markup, and four sentences of inherited filler were removed.
Updated on 3 Sep 2026: the page moved onto the site’s guide layout, with the Unilever example drawn beside the answer, showing where a standard stop and a guaranteed stop each fill through a gap, and a diagram of the trailing stop worked example. No figure changed.
Updated on 2 Sep 2026. The trailing-stop and stop-limit sections were cut to a definition, the mechanism and one worked example each. They had been two full articles on two order types with no other home on this site, and this page stays their home. A typed example of what IG charges for a guaranteed stop was removed, because IG states the premium per instrument on its platform and publishes no figure we can source. No other figure changed. Reviewed on 25 Aug 2026 in a site-wide accuracy pass: broker figures were re-checked against each broker’s own UK source, claims that disagreed with the source were corrected, and figures no broker publishes were removed. Each month we also update the average spreads data published by the brokers.
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The page’s own example drawn out: a standard stop fills at the first quote after the gap, a guaranteed stop fills at the level you set, and no stop keeps losing.
Stake per point from your risk
Turn a money risk and a stop distance into a stake
Risk on this bet
Daily range window: 20 trading days to 28 Aug 2026
Risking £50.00(1% of £5,000) with a 40-point stop on GBP/USD gives a stake of £1.25 per point. If the stop is hit you lose £50 plus the spread.
Stop 40 points
Average daily range 57.9 points
02957.9
The 40-point stop is 69% of GBP/USD's average daily range, measured at 57.9 points over the 20 trading days to 28 Aug 2026. The same £50 risk with a stop the full width of that range is a stake of £0.86 per point.
Range is the average daily high-to-low over the stated window, from our dataset of daily bars (5pm New York day boundary). Stakes round down to the broker's £0.01 increment so the risk figure is never exceeded. A guaranteed stop holds the loss at exactly the stop for a premium; a normal stop can fill beyond it in a gap.
We hold no measured daily-range dataset for this market, so no range comparison renders. Stakes round down to the broker's £0.01 increment so the risk figure is never exceeded. A guaranteed stop holds the loss at exactly the stop for a premium; a normal stop can fill beyond it in a gap.
What is A Stop Loss Order?
A stop-loss order is a risk management tool designed to limit potential losses by automatically closing a position when the market reaches a specified price level.
How Does A Stop Loss Order Work In Spread Betting?
Whether you go long or short, your stop sits below the entry on a long bet and above it on a short bet. When a trader initiates a spread bet, they can set a stop-loss order at a predetermined level. If the market moves against their position and reaches the specified level, the stop-loss order is triggered, automatically closing the trade to minimize potential losses.
How Does A Stop Loss Minimize Risk?
Risk mitigation is a primary objective of a stop-loss order. By setting a predetermined exit point, traders can control the amount they are willing to lose on a particular trade. Because spread betting leverage means your margin is smaller than the exposure your stop must cover, a stop matters more on a leveraged bet.
The Pros and Cons of Using a Stop-loss
Generally speaking, a stop-loss will help you avoid large losses that wipe out your capital but there are some disadvantages to using them. Here are some of the pros and cons of using a stop-loss for spread betting:
Pros:
Risk Management: Control and limit potential losses by setting predetermined exit points.
Emotional Control: Provide a rational and disciplined approach, mitigating the impact of emotions on decision-making.
Consistency: Maintain consistency in trading strategy by adhering to predetermined risk levels.
Time Efficiency: Automate the exit process, allowing focus on other aspects of the trading strategy.
Cons:
Premature Exits: Placing tight stop-losses may lead to early exits due to short-term market fluctuations.
Whipsaw Effect: Volatility can trigger stop-losses only to see the market reverse, known as the “whipsaw” effect.
Market Gaps: During high volatility, market gaps may prevent stop-loss execution at expected levels, leading to larger losses.
How to Set a Stop-Loss
Using a stop-loss order in spread betting is a straightforward process. Traders need to understand the mechanics of placing a stop order and the factors to consider when determining the optimal stop-loss level.
Most spread betting companies will offer easy-to-use trading platforms, and you’ll be able to learn how to place stops, as well as entry and exit orders via a demo account without having to risk any capital.
Example Of A Stop Loss Order
Market: Unilever (ULVR) Shares Direction: Short (betting the price will fall) Stake Size: £1 per point
After analysing the chart, you believe Unilever shares are due for a short-term decline. The current sell price is 5,000p, so you open a short spread bet at this level. To protect your trading capital if the market moves against you, you place a stop-loss 100 points above your entry.
Entry Price: 5,000p Stop-Loss: 5,100p Stake Size: £1 per point
Instead of falling, Unilever reports stronger-than-expected earnings before the market opens, and the shares gap straight past your stop. The stop is triggered at 5,100p, but a standard stop is an instruction to close at the next available price, not a promise to close at your price, and the first price quoted after the announcement is 5,180p. That is where you are filled.
The extra 80 points is slippage, and it is the difference the order type decides. A guaranteed stop-loss order on the same trade would have closed you at exactly 5,100p and capped the loss at £100, whatever the gap did, in exchange for a premium paid up front. On this trade the guarantee would have been worth £80 less the premium.
Both outcomes beat having no stop at all: the shares kept climbing to 5,250p, which would have been a £250 loss. The lesson is not that stops fail, but that a standard stop limits your loss approximately and a guaranteed stop limits it exactly.
Types Of Stop Orders
There are four main types of stop orders that you’ll likely use when spread betting:
Stop-Loss Orders:
A stop-loss order is a risk management tool that automatically sells (or buys) an asset when its price hits a predetermined level. It helps traders limit potential losses by ensuring a timely exit from a position, providing a crucial element of financial protection.
Stop-Entry Orders:
A stop-entry order is a type of order that becomes a market order to buy or sell an asset when its price reaches a specified level. Traders use this order to enter the market at a more favourable price, activating the trade only when a predefined price level is reached. It enables traders to seize opportunities without constant monitoring.
Guaranteed Stop-Loss Orders
Guaranteed stop-loss orders (GSLOs) provide the highest level of protection available when spread betting. Unlike a standard stop-loss, a GSLO guarantees your position will close at the exact price you specify, even if the market gaps through your stop during periods of extreme volatility.
In return for this protection, brokers charge a small premium, which is usually quoted as a fixed number of points and varies depending on the market being traded. The premium is displayed on the trade ticket before you place your order.
Trailing Stops
This dynamic stop-loss order adjusts as the asset’s price moves in a favourable direction, helping lock in profits while allowing for potential further gains. Your order will only move if the market moves in your favor and stay in the same position if the market reverses. This has the effect of limiting your downside and increasing your upside on a spread bet.
Stop-Loss vs Guaranteed Stop vs Trailing Stop
Now that we know what each stop order type does, it’s important to understand the difference between them all and when to use them. While all three aim to limit losses, they work in different ways and are suited to different trading situations.
A standard stop-loss automatically closes your position once the market reaches your chosen price and is free with most brokers. However, during periods of extreme volatility or market gaps, your trade may be executed at a worse price than expected, resulting in slippage.
A GSLO removes this uncertainty by guaranteeing your position will close at the exact stop price, even if the market gaps beyond it, for a premium charge. GSLOs are particularly useful around major economic announcements, earnings releases, or when holding positions overnight.
A trailing stop is designed to protect profits rather than simply limit losses. Instead of remaining fixed, the stop automatically moves in your favour as the market moves in your direction, while staying unchanged if the market reverses. This allows profitable trades to continue running while locking in gains if momentum fades.
The best choice depends on your strategy. Standard stops suit most trades, guaranteed stops provide maximum protection during volatile conditions, and trailing stops help traders capture larger trends while reducing the need for manual trade management.
Guaranteed Stops: Worth the Cost?
Guaranteed stop-loss orders eliminate slippage, providing traders with a guaranteed exit price. However, they come with certain drawbacks, mainly upfront costs, or increased spreads.
In our view, guaranteed stops are worthwhile when trading around major economic announcements, company earnings releases or when holding positions overnight or over weekends. These events increase the risk of price gaps, where a standard stop-loss may be filled at a worse price than expected.
Not every spread betting provider we rank offers guaranteed stops. Check the table for each spread betting provider we rank and whether it offers a guaranteed stop, the order that holds its level through a gap. Understand how spread betting stops behave.
Guaranteed stop-loss order availability for each ranked UK spread betting broker
8 of the 14 offer guaranteed stop-loss orders, 4 have confirmed they do not, and 2 have not confirmed either way, so we leave them unmarked rather than guess. Every row was confirmed with the broker or against its published terms between 24 and 27 Aug 2026, and the Checked column carries the later of that contact and our own last reading of the provider’s own page.
While paying the premium will slightly increase your trading costs, many traders consider it worthwhile for the certainty it provides during highly volatile conditions.
IG is the only ranked provider publishing a guaranteed-stop premium the site can read: 0.8 points on FTSE 100, 1.2 pips on EUR/USD (25 Aug 2026). Every other provider quotes it on the deal ticket.
Guaranteed stop premium published by IG, by market
Market
Guaranteed stop premium
FTSE 100
0.8 points
EUR/USD
1.2 pips
The premium is quoted in points on an index, pips on a currency pair, and at some providers a percentage of the position's value.
The timing of a guaranteed-stop premium, at placement or trigger, sets your annual cost because it depends on how often stops fire. The list below splits providers that publish this two ways, while OANDA offers spread bet guaranteed stops but only publishes its CFD charging model, so it appears above.
Spreadex. Every guaranteed stop carries a premium, and one can only be set when you open the trade rather than added to a position that is already running.
Capital.com. Premium charged only if the stop is triggered; formula: GSL premium × position open price × quantity.
IG. Premium charged only if the stop is triggered.
ThinkMarkets. ThinkMarkets added guaranteed stops on 11 Feb 2026, on its own ThinkTrader platform, enabled from the order screen.
City Index. Premium charged only if the stop is triggered; formula: either a number of points multiplied by the size of your position, or a percentage of the position’s notional value, depending on the market. Attaching a guaranteed stop costs nothing. City Index states that amending one, adding one to a position you already hold and cancelling one are all free of charge as well.
CMC Markets. Premium charged when the stop is placed, refunded if never triggered; formula: premium rate × bet size.
Spread Co. Guaranteed stops on selected markets.
For routine trading in stable markets, a standard stop-loss may be sufficient. However, if protecting your maximum potential loss is your priority, a guaranteed stop can be a valuable risk management tool despite the additional cost.
Should Beginners Use Stop Loss Orders?
Beginners in spread betting should use stop-loss orders as part of their risk management strategy. Stop-loss orders help protect traders from significant losses by automatically closing positions when the market moves against them.
For beginners, who may still be learning the ropes and may not have extensive experience in market analysis, stop-loss orders give a fixed exit. They provide a predefined exit point, limiting potential losses and preventing emotional decision-making during market fluctuations.
Professional traders who don’t use stop-orders will generally only have trades on while they’re in front of the screen, or they’ll have a trading associate watching the markets while they’re away from the screens. They do this often to not display their intentions to other market participants.
Do Day-Traders Use Stop Orders?
Day traders frequently use stop orders as a key element of their trading. In the fast-paced world of day trading, where market conditions can change rapidly, stop orders act as a risk management tool.
Some tips on Using a Stop-Loss
In our opinion, using a stop loss in spread betting is about the most important thing you can do to protect your capital. Here are a few tips to consider:
Understand Your Risk Tolerance: Before placing a spread bet, know how much you’re willing to risk on a trade. This will help you determine the appropriate distance for your stop loss.
Set Realistic Stop Levels: Place your stop loss at a level that gives your trade enough room to breathe while still protecting you from significant losses. Consider the volatility of the market and the historical price movements.
Use Technical Analysis: Utilize technical indicators and chart patterns to identify potential support and resistance levels. Placing your stop loss just beyond these levels can help avoid premature triggering.
Consider the ATR (Average True Range): The ATR is a volatility indicator that can help you set stop loss levels based on the current market conditions. Adjust your stop loss according to the volatility of the asset.
Tight Stop Losses vs Wide Stop Losses
Using a tight stop loss involves setting a close exit point, limiting potential losses but increasing the risk of premature exits due to market volatility. It suits traders with a short-term focus, aiming for quick gains.
Conversely, a wide stop loss allows for more price fluctuation, reducing the likelihood of premature exits but exposing the trader to larger losses. This approach is favored by those with a long-term perspective, willing to endure market noise.
Both strategies have pros and cons, emphasizing the importance of aligning stop-loss placement with individual risk tolerance, market conditions, and overall trading objectives.
Trailing Stop Loss
A trailing stop loss is a stop order that automatically moves as your spread bet moves into profit, helping you lock in gains while still allowing the position to run. Unlike a fixed stop loss, a trailing stop only moves in your favour.
The stop follows the market when the trade moves into profit but stays fixed when the market price moves against you. If the market reverses by your chosen trailing distance, the position will be closed out.
The amount of space between the current market price and the stop level is called the trailing distance. This can be measured in points, pips or percentages depending on the platform. For tighter control over your exit price, see how a stop limit order works.
Worked Example: Trailing Stop on a GBP/USD Spread Bet
Detail
Value
Market
GBP/USD
Direction
Long
Entry Price
1.2750
Stake Size
£2 per point
Trailing Stop Distance
30 points
I buy GBP/USD at 1.2750 with a 30-point trailing stop.
The initial stop sits at:
1.2750 − 0.0030 = 1.2720
GBP/USD rallies to 1.2850.
The trailing stop rises to:
1.2850 − 0.0030 = 1.2820
GBP/USD falls back to 1.2820.
The trailing stop triggers and closes the position.
Given the market price rises 70 points from 1.2750 to 1.2820 before my trailing stop is triggered, my final profit is as follows:
70 × £2 = £140
If I had used a regular 30-point fixed stop, my stop would remain at 1.2720, which means the trade may never have locked in a profit.
The trailing stop worked example. The 30-point distance never changes; the level it is measured from ratchets up with the price to 1.2820 and stays there when the price turns. The bet closes 70 points up, £140 at £2 per point, where a fixed stop would still be sitting at 1.2720.
Stop Limit Orders For Spread Betting
A stop limit order is an advanced trading order that combines a stop price and a limit price to control how a trade enters or exits the market. Unlike a standard stop order, which executes at the best available price once triggered, a stop limit order will only execute at your chosen limit price or better.
How Stop Limit Orders Work
The stop price is the trigger price. Once the market reaches this level, the order becomes active. The limit price is the execution boundary which means the trade will only fill at the limit price, or a better price.
For buy orders the market must stay at or below the limit price. For sell orders the market must stay at or above the limit price.
Worked Example: Stop Limit Order on the FTSE 100
Assume the FTSE 100 is trading at 8,420 with resistance levels around 8,500 and I believe a breakout above 8,500 could trigger momentum buying.
Order Detail
Value
Market
FTSE 100
Direction
Buy
Stop Price
8,500
Limit Price
8,510
Stake Size
£5 per point
The FTSE gradually rises from 8,495 up to 8,507. My stop activates at 8,500. Because the market remains below my 8,510 limit, my order executes successfully.
Instead, imagine the FTSE gaps from 8,498 straight to 8,525 after strong economic data. My stop activates at 8,500, but the limit price was at 8,510 and the market immediately exceeds it. Result: the order does not get filled.
These two scenarios illustrate why stop limit orders reduce slippage risk but increase the risk of your order not getting executed or filled.
A stop-loss order is a risk management tool that helps traders limit potential losses by automatically closing a position when the market reaches a predetermined price level. That matters most in volatile markets, where it protects traders from large downturns.
Which Market Should I Use A Stop Loss On?
Using a stop-loss order is advisable in any market where you engage in trading or investing.
The decision to use a stop-loss should be driven by your risk tolerance, market conditions, and specific trading strategy rather than being limited to a particular market. With most spread betting brokers, you’ll be able to trade currencies, stocks, commodities, indices and many more.
With a background in trading and investing that spans over 20 years, Justin co-founded Spread-Bet.co.uk. He has a Masters in Business and has contributed to leading finance sites including Forbes, Kiplinger to Finance Magnates.
Justin Grossbard co-founded Spread-Bet.co.uk with Noam Korbl in 2024, and co-founded the broker comparison network CompareForexBrokers with him in 2014. He has been investing since 1998 and actively trading since 2014, and has written on forex and CFD trading for Kiplinger, Entrepreneur, Finance Magnates and MoneyShow since 2019.
