AvaTrade launches one-click risk management tool AvaProtect

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AvaProtect by AvaTrade

“Worried about losing on a position? AvaTrade has you covered.” In that way, CFD and Forex trading platform AvaTrade promoted its new brand risk management tool AvaProtect on its website.

According to a press release published by the trading platform, AvaTrade‘s customers will be able to integrate AvaTrade, a new “revolutionary one-click risk management tool” for its desktop and mobile investment platforms.

Based in Dublin, Ireland, AvaTrade was founded in 2006. It offers Contracts for Difference for over 1,000 financial instruments. The new risk management tool was created to enhance clients’ protection from adverse market movements.

“AvaTrade will reimburse you for losing trades at the end of the protected period, direct into your account!” The perk is a small fee for the safety net, the AvaProtect website says.

The tool comes at a moment when volatility has been moving at extreme levels in the last months due to the uncertainty for a potential economic recovery or a more profound COVID-19 pandemic impact on the most important economies around the world.

“Today’s economic and geo-political environment is stoking plenty of market volatility, which means great opportunities, but also great risks, for traders,” says Dáire Ferguson, CEO of AvaTrade. “AvaProtect empowers our clients to follow their convictions and express their market views, safe in the knowledge that they can protect their trades from losses through AvaProtect – a truly distinct feature within our industry.”

AvaTrade also speaks Polish

Previously, retail trading broker AvaTrade announced the expansion of its physical presence globally with a new office in Warsaw, Poland. AvaTrade International network includes Dublin, Abu Dhabi, Milan, Tokyo, and Sydney.

AvaTrade is regulated in Ireland, Australia, Japan, Abu Dhabi, among other regulatory bodies. It offers Forex, CFD’s, and FX Options trading.

A right tool for uncertainty moments

VIX chart - Fear Index daily chart - July 2020

If it works in the way the broker announces, the AvaProtect would be an excellent tool for moments where volatility is rising and swings become violent. Let’s put some context here.

In March this year, the VIX, also known as the fear index, jumped to 85.00, a level not seen since the worst months of the great financial recession back in 2008. Now, the VIX index is trading around 30 in July, considerably lower than the extreme conditions between March and April 2020, but well above the average of the last years around 20.00.

In that framework, AVAProtect would be a useful risk management tool to avoid headaches. That being said, please check the terms and conditions and other pros and cons in our AvaTrade Broker Review before trying it out.

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