Guaranteed stop losses

I think this is relevant to the forex markets, especially long term traders, but it is definitely relevant to share trading.
Anyway, I am concerned about guaranteed stop losses. When using a daily time frame, if we want to avoid large losses due to ‘gapping’ we can set a guaranteed stop loss. There is a fee for this (brokers seem to vary in the way they calculate the fee, which is another matter.)
Ideally, I would like to move the stop loss at the end of day, assuming I am in profit. However, guaranteed stop losses cannot be moved. The only thing to do is to close the position, then re-open it with another guaranteed stop loss. So we now are paying another fee + another spread, every day. The alternative is to leave the guaranteed stop loss where it is until a profit of x points, then close, and hope for the best that the market does not reverse to the guaranteed stop loss.
Anyone else have any thoughts on this?
I guess with forex it is not such a problem as the markets move with more volatility, but it is a problem with shares. I post here as there are so many helpful people here. I know that traders have lost absolute fortunes due to ‘gapping’.

Gapping in forex is mainly a problem for trades held over the weekend. What you can do is close the trade during late Friday, and re-open it during Monday’s open.

I had in mind the Swiss Franc on Jan 15th, which was a Thursday.

The point is that better to have guaranteed SL than those which executed with slippage. I had lots of occurrences when were losing good amount on pips just because of volatility…

Also can anyone tell me if Guaranteed Stop Losses are completely guaranteed? Would those people who lost a lot on the swissy have been covered with a guaranteed stop loss, even when there was so much activity brokers such as IG 'crashed?'
If you read Terms and Conditions, brokers seem covered to be able to do just what they like.
Could ANYONE ADVISE please?

Cheers,
Dave

It proved no stop loss can save you if there’s no liquidity at that price (at least that’s what we were told… for all we know the brokers might have intentionally failed to execute stop losses to claim clients’ money…)

Thanks for the reply, so is it true to say that clients had ‘guaranteed’ stop losses in place and STILL lost a bomb? If anyone was in this position, it would be good to know.

Cheers everyone,
Dave.

Just want to pointed out that successful trading is not based on hopes, instead it is based on a good trading strategies and good risk management.

[QUOTE=“Rambo35;734359”] Just want to pointed out that successful trading is not based on hopes, instead it is based on a good trading strategies and good risk management.[/QUOTE]

Or making money.

Very true, and I now understand from IG that a guaranteed stop can be amended, without closing out.
So does anyone know of any cases where a Guaranteed Stop Loss has not been honoured?
As it is very important.

Also take into account that any broker giving a “Guaranteed Stop Loss” is also most definitely a Market Maker where the price feed is typically indicative of the brokers order books. Guaranteed Stops are not real, they simply don’t exist in the “real ECN market” as a stop is simply an order to reverse a transaction such as a buy stop or a sell stop. The slippage which you are avoiding by a guaranteed stop is caused by real market liquidity.

Also take into account the following:

Is the extra cost forgone by taking a guaranteed stop equal or less than what you would on average save from using a standard stop order with the possibility of slippage?