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Firstly, the guaranteed stop loss is a special kind of privilege you get as an investor. Here, you can put a limit on a particular price from the actual market price. Now what happens is if the market falls down, the market price that is the price of the share falls down, then it won’t affect you that much as you already have put a limit.

In case of non guaranteed stop loss or just the stop loss, here the scenario is a bit different. The broker will give you a certain limit below which the transaction will be closed. Here the stop loss limit will be set by the broker of CFD. 

For example in a guaranteed stop loss say for example the price of a share is $10 and you are told to make a guaranteed stop loss which will be minimum 5%. Here you will quote a price lesser then $10, say it will be $9.50. Now if the market next day goes down more than $9.50, say it goes down till $9.10, then you will have to bear a huge loss. But as you have set the stop loss at $9.50, so your transaction will be stopped at $9.50 only. So here you incur a less amount of a loss. 

In case of non-guaranteed stop loss, a share has got a stop loss at an amount of $1.55 but the broker will sell you this stop loss at $1.50 only. Here this price which the brokers have given you might not be liked by you.  

Incase of guaranteed stop loss you have to pay a minimum commission of 1% but incase of non- guaranteed stop loss you don’t have to pay any commission. 

Now let’s find out the risk of non guaranteed stop loss 

A lot of risk is associated with the non-guaranteed stop loss. As here you don’t fix the stop loss. The minimum stop loss is generally 5%, but in non-guaranteed stop loss you get the limit below that. Say if the required GSL that is the guaranteed stop loss is $9.50 then the broker will give you a non-guaranteed stop loss at $9.45. Here there is a bigger risk of loss than that of the GSL. In GSL the amount of money you lose is much lesser than that of the non-guaranteed stop loss. 

Even at the time of the slippage you may not do the transaction at your selected stop loss amount, as overnight market jumps and the position can go much worse than the amount you have actually selected. This is another but a very important risk associated with the non-guaranteed stop loss. So it is better that you should be aware of all the risk factors before you actually invest.