IC Markets Stop Loss Orders guide

When the market reaches your stop level, a standard stop loss typically becomes a market order and fills at the next available price. In fast or gapping markets, that fill can be worse than your stop level, a difference known as slippage. Some brokers also offer guaranteed stop losses on certain products, usually for an additional charge, but availability and terms differ widely and must be confirmed directly. Long-term investors should understand that a stop loss reduces exposure to further decline; it does not remove the possibility of loss, and it can close positions during temporary dips.

Execution behavior is defined in a broker's order execution policy, product terms, and platform documentation, and it can differ by account type, platform, and instrument. Before relying on stop losses, read the current versions of these documents and confirm anything unclear with support in writing. Check which stop order types exist on your platform, how they behave over weekends and market closures, whether minimum stop distances apply, and whether any stop-related charges appear in the fee schedule. The same verification steps apply to any broker you assess via /find-my-broker.

Long-term investors use stops differently from short-term traders. Some prefer wide stops that only trigger on major declines, others use alerts plus manual review instead of automatic exits, and some avoid stops on core holdings entirely to prevent being shaken out by volatility. Whatever you choose, write the rule down, test it in a demo account where possible, and account for the costs of exiting and re-entering positions using the brokerage fee calculator at /tools/brokerage-fee-calculator. Broader position management guides are available at the long-term investing hub at /invest-long-term. Note that stop losses are especially important to understand on leveraged products such as CFDs, where losses can accumulate quickly.