Up To One Million Dollars Protection
AvaTrade, the award-winning leading forex and CFD broker, introduces a new standard in risk reduction with AvaProtect, a new and innovative risk tool.
This unique risk management feature allows you to protect a specific trade against losses of up to one million dollars over a chosen time frame, all of this is in exchange for a modest hedging cost paid at the time of purchase.
AvaProtect was developed as part of the company’s ongoing commitment to client success and satisfaction and is available exclusively on AvaTrade’s platforms: the AvaTradeGO App that can be downloaded on Google Play and App Store and WebTrader, which requires no download or instillation whatsoever.
Reduced Risk, LOTS of Benefits
Unlike a standard position, where things can go south when the market turns against you, protected trades are safe from any adverse movement during the chosen period. In other words, AvaTrade will reimburse you for losing trades at the end of the protected period, direct into your account!
Protection is ON
Activating protection is easy, and only requires 6 simple steps:
- Tap to open WebTrader or the AvaTradeGO app
- Select an instrument*
- Click on the AvaProtect icon
- Choose protection duration
- See the fee and expiry date
- Complete the trade
And that’s it - Your trade is protected!
*Available on FX, Gold and Silver trades.
See AvaProtect in action, watch our video
How To Hedge Your Bets With AvaProtect
AvaProtect risk coverage reimburses any losses that incur during the time of protection, including: stop out, manual closure of a trade, or unrealised losses of an open trade at the time of coverage expiry. Any trades still open at the expiry of the protection will remain open, but the negative floating at time of expiry will be reimbursed directly to your account, excluding the hedging cost. If a protected trade is closed manually or by stop out, the coverage will end at that point. Any reimbursed losses will be credited in form of liquid cash, with no withdrawal restrictions whatsoever.
Enjoy Total Control Over Your Parameters
Each AvaProtect contract has a fixed protection period that can be manually chosen by you (hourly or daily), thus allowing full control of the AvaProtect contract term. Additionally, You can maintain control over the protected trade by choosing whether to close the position or to set Take Profit/Stop Loss parameters, according to your discretion.
Calculating the AvaProtect Premium
The AvaProtect premium is based on the expected volatility of the underlying position over the period of the contract. This premium will vary according to the trade size and protection period as chosen by you.
The hedging cost for AvaProtect will be deducted from your free cash balance at the time of purchase.
Can You Reduce Risk When Trading?
Apply AvaProtect when executing your next trade and enjoy peace of mind during the protection period. Feel free to make bigger and bolder moves in the market knowing that if your protection ends and you have an open position that’s losing, AvaTrade will reimburse your account in full for any loss you incur. Your only expense is a small hedging cost- simple as that!
Still worried about losing on a position? Never worry again with AvaProtect. Use WebTrader or download AvaTradeGO, open a free trading account and experience what AvaProtect has to offer
AvaTrade: Trade with Confidence
* During the protected period
Frequently Asked Questions (FAQs) about AvaProtect™
- Does AvaProtect™ really offer protection when markets turn against me?
Absolutely. AvaProtect™ functions according to a very basic premise. This risk management tool protects your trading positions (on specific financial instruments that you choose) against losses. You as the trader need to select a specific period that AvaProtect™ will be active for. During that period, your trade will be protected against losses. Of course, this comes at a fee which is paid to the broker – AvaTrade South Africa. The fee is deducted at the time you protect your position, from your available cash balance. For more, read the terms and conditions of AvaProtect.
- How does AvaTrade South Africa determine the premium for AvaProtect™?
The cost of employing risk management features and functions is dependent upon the level of risk – volatility – involved in the trade. With this particular risk management resource, the premium is calculated according to the expected volatility (EV) of your underlying position, over the time frame of the contract in question. It varies from one position to the next, as you might expect. If you decide to close out a position before it expires, and the trade is in the red, you will be fully reimbursed for your loss. If you close the trade profitably, you keep the profits.
- What timeframes are available, for protection purposes, with AvaProtect™?
AvaProtect™ comes standard with 1-day protection and 2-day protection. The expiration takes place at 10 AM New York time, or GMT -5. Just recently, AvaTrade South Africa began offering much shorter trade time protections for risk management. These include 1 hour, 3 hour, 6 hour, 12-hour protection for specific FX pairs. We strongly advise that you use the AvaProtect™ function and assess the timeframes that are available for your chosen assets. This is available through AvaTradeGO’s trading page. If your position has unrealised losses at expiry time, you will automatically be credited with those losses.