The Forex broker AvaTrade offers its customers the first online (web based) platform designed exclusively to trade with OTC (Over The Counter) Vanilla options based on currency pairs (Forex).
This platform, known as AvaOptions, offers new ways of trading that are simply not possible through normal spot Forex market. Whether the investor is interested in covering (hedging) the open Spot Forex positions or benefit with the unlimited profit potential with limited risk offered by options, AvaOptions has all the tools and features that the trader may need.
AvaOptions has a powerful and intuitive interface, which offers the possibility to trade with a wide range of Vanilla currency options, which allows the traders to diversify their operations in the Forex market. With this application, the trader can trade with options based on more than 30 currency pairs in a wide range of maturities, for which it has several user-friendly tools to implement any trading strategy with options.
Main features of AvaOptions
- It is a platform that allows the trader to trade any combination of transactions in the spot Forex market and with call options and put options from a single application. In this way, the investor can create his/her optimal investment portfolio.
- Vanilla options based on more than 30 currency pairs and with a wide range of maturities ranging from 1 day to 1 full year.
- It has an Strategy Optimizer by which the traders can design their own trading strategies to trade with options, which accurately reflect their perspective of the market and are fully balanced with their risk tolerance.
- A built-in risk manager tool which allows the traders to determine the net risk of their portfolio of trades. In this way the trader can analyze visually how various transactions can impact (positively or negatively) the net position before the execution and opening of new positions.
What is options trading?
Call options give the investor the right to buy, while put options give the right to sell a financial asset at a future date previously agreed and at a price also previously negotiated. For more information on options trading please see the following article:
With AvaOptions, the traders can buy options and know the result of the worst possible scenario, and make a profit from the sale of options acquired in case the market behave according to their estimate.
By combining several types of options, the trader can design accurate strategies that reflect the trader´s vision of the market and the best way to make a profit on this.
The options are a powerful tool to speculate in financial markets. In fact, stock options have become increasingly popular, and in the Forex market, the currency options trading represents more than 10% of the transaction volume in this market.
Through its simple and comprehensive interface, AvaOptions offers all the tools and possibilities of options trading for traders that trade regularly in the spot Forex market. Thus, Avatrade customers can get the following benefits:
- Discover new ways of trading in the market that are not possible through the spot Forex.
- Combining call and put options to create smarter strategies.
- Enjoy the unlimited earning potential while the risk level is limited at the same time.
- Hedge their positions in the FX spot and balance their portfolio of market transactions.
Benefits of Avaoptions Platform
- It offers the possibility to trade with options based on more than 30 currency pairs.
- A demo account for 21 days to evaluate AvaOptions platform.
- Trades in the spot Forex market and with Forex options integrated into a single account for efficiency.
- Market access 24 hours a day, Monday through Friday.
- Real-time support for the client in their own language.
- Historical price charts.