The Forex and CFD broker Avatrade has announced the addition of a new tool called AvaProtect, which is a risk management mechanism that enables its clients to protect their transactions on more than 40 assets. At the moment, this application is only available on the AvaTradeGO mobile trading platform, designed by this company, and created specifically to trade in the markets from Android and iOS mobile devices.
Basically, AvaProtect acts as a kind of insurance that covers the trader’s back when he applies this tool to protect a position that he is not sure of and that could cause heavy losses.
You can get more information about the company Avatrade and its brokerage services in the following guide about this broker: Review of Avatrade broker
Now we are going to explain how this application works:
How does AvaProtect work?
For a small initial fee, the clients of Avatrade receives a virtual “insurance” for their trades on more than 40 assets when this option is activated. One of its advantages is that the trader can accurately indicate how long he wants to have this insurance in each trade. In this way, the trader can open his positions without the need to constantly monitor the markets while these trades remain active, since regardless of what happens in the market, he will be protected.
As we can see in the previous image, it is very easy to use AvaProtect to protect any trading position in AvaTradeGO. Before opening the trade, we only have to check the box corresponding to the AvaProtect tool and it is activated immediately.
As previously stated, Avatrade charges a fee each time this application is used to protect any trade. This rate may vary depending on the asset (market) in which the trade is carried out, the trading volume and the protection period. Therefore, before implementing this function, the trader must make sure to verify what is the fee that he will have to pay for the use of AvaTradeGo, to see if it compensates the risk assumed.
When can it be useful to use this application?
As every trader knows, in standard trades things can get quite complicated when the market starts to move against it. For their part, the transactions covered by AvaProtect are 100% insured against any adverse price movement during the selected period. This means that Avatrade will reimburse the trader for the loss of their protected trades at the end of the period. That money is deposited directly into the client’s trading account. Furthermore, any amount of money lost will be refunded as liquid money and can be withdrawn without restrictions.
Do you want to learn more about AvaProtect?
You can get more information about this new service from the broker Avatrade and open an account at no cost on the following page: