Slippage on a Guaranteed stop order at correct price

[tar]

I have never set a 'guaranteed' stop in SB. I always took the view that 'guaranteed' did not mean 'guaranteed under all circumstances regardless of any and every circumstance', and that therefore, the time when I would most need a 'guaranteed' stop would be when the small print would allow the SB firm to avoid activating it.

Of course, I have had some non-guaranteed stops occasionally not activated when I think they should have been - but over many trades, that has sometimes been to my financial advantage anyway that the position was left open.

G stops is sometimes useful and it is one of the advantages of SB especially on equities , check this from IG dealing book : " Controlled Risk bets
A Controlled Risk bet is one which has a
special kind of Stop-loss Order attached to it.
When you open a Controlled Risk bet you
pay a small premium, added to your opening
price, and you choose a stop-loss level at
which, if our quotation reaches it, your bet is
to be automatically closed. You are
guaranteed at all times, including overnight,
that if our quotation reaches your selected
stop-loss level your bet will be closed at
exactly the level you chose, even if our
quotation has in fact passed right through
that level.
For example, you might ‘buy’ £10/point of
September BP at 572.0 with a Controlled
Risk Stop at 522.0. You cannot lose more
than £500 ([572.0 - 522.0] x £10). Suppose
September BP drops to a low of 530.7/533.5
one evening and overnight news of an oil
disaster breaks. The next morning BP has
dropped in the underlying market and our
September BP opens at 501.1/503.9. Your bet
will still be closed at your selected
Controlled Risk stop level of 522.0. "

 

[MikeYass]

This is a G stop not normal stop it doesnt matter if they can hedge it or not they should honour the stop , and if they cant they shouldnt offer it from the first place , we r talking about SB here not direct access market .
"We offer guaranteed auto‐stop losses on many of our markets. These
guaranteed stops are absolutely free and protect against an adverse movement
in the underlying market by closing out your open trade at precisely the level
that you specify. The GSMS value represents the maximum trade size that is
eligible for guarantee. For example, a GSMS value of 50 means that we will
guarantee every auto‐stop below (and including) a trade size of 50. Any autostops
that have a trade size greater than 50 would not be eligible for a
guarantee and would be treated as non‐guaranteed (subject to slippage).
Please note that not all products are eligible for the free guaranteed stop
feature."

Thank you for your reply tar. This is exactly how I understand it as well. The compliance department said that their their terms and conditions allow them to alter the maximum stake eligible for free guaranteed stops at any time "the GSMS figure". I would agree that they are allowed to change this figure. But not when a client has an open position on the market unless they make good the losses they cause the cleint to suffer!

 

[MrGecko]

Thank you for your reply tar. This is exactly how I understand it as well. The compliance department said that their their terms and conditions allow them to alter the maximum stake eligible for free guaranteed stops at any time "the GSMS figure". I would agree that they are allowed to change this figure. But not when a client has an open position on the market unless they make good the losses they cause the cleint to suffer!

If thats the reason they've given for not filling you at the "guaranteed" price, then I agree it's crappy service; they should have at least given you the opportunity to close the position / change the order first.

 

[MikeYass]

If thats the reason they've given for not filling you at the "guaranteed" price, then I agree it's crappy service; they should have at least given you the opportunity to close the position / change the order first.

Yes, it was rubbish service. They couldn't even get the facts correct in their investigation. The claimed I was trading at a larger stake than I was (£15 rather than £13). I don't believe this was done on purpose, i think it was because they didn't want to investigate my complaint properly as they know they are in the wrong.