has adopted a new trading feature that allows clients to obtain ‘protection’ against losing deals and have their original investment refunded. Dubbed ‘AvaProtect,’ the new risk management tool incurs a premium fee, based on market volatility, once the deal is opened.
When faced with a losing position, it provides the trader with the ability to hedge any adverse movement during the chosen period, losing no more than the spread and fee he paid while allowing him to gain from any positive price movement.
“For a small fee, AvaProtect offers a quick, easy and intuitive protection. Any client losses on these trades will then be credited directly to the clients trading account in the form of liquid cash; with no withdrawal restrictions whatsoever,” the company explains.
Available on the AvaTradeGO app
When a trader opts-in AvaProtect, they essentially buy a for the pre-detriment period giving him the right to be reimbursed for losing trades at the end of the protected period.
How much a risk-free trade costs depends on the market you are trading. Available on the AvaTradeGO app, the trader can see the fees before opening a position as the premium will be displayed on the trade ticket. This premium is held separately alongside the margin, and if triggered, will be printed separately to the account’s statement.
“In life, we can always learn from our mistakes. It helps shape us as we develop our skills. The trading world is no different in this respect. With AvaProtect, our clients can continue to learn from mistakes, knowing that their capital will still be protected no matter what. It is a win-win scenario for all,” Dáire Ferguson, CEO of , said in a statement to Finance Magnates.
“There is no doubt that AvaProtect will revolutionise the market, providing an intuitive & enhanced protection to all of our clients; greatly benefiting our traders by allowing them to manage their risk more effectively knowing they can protect their trading from losses – which is totally unique in our industry,” concluded Ferguson.
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