AvaProtect: how AvaTrade minimises your losses

AvaTrade is a reputable international broker offering a wide range of CFDs, currency options, futures contracts, tools, and platforms. Over the years, AvaTrade has won numerous awards for its excellent services, catering to both professional and novice traders. One of its most notable features is AvaProtect, a unique insurance tool designed to protect you from losses.

In the dynamic world of trading, losses are inevitable. Markets tend to change direction rapidly in response to news events, geopolitical tensions, or shifts in market sentiment. Without stop-loss functionality, even a well-documented trade can result in a loss. This is where AvaProtect comes in.

With the slogan "Protect your trades, control the risk," AvaTrade launched AvaProtect, a tool designed to help traders navigate the markets with confidence.

This is essentially a hedge for your trades: if things don't go as planned during the protection period, Avatrade will cover your cash losses, no questions asked.

Here are all the benefits you can get from the AvaProtect tool:
Total protection up to $1 million per trade
Easy budgeting with advanced costing
Flexible time options
Available on both mobile and Webtrader platforms
Reduces emotional stress

In this review, we'll describe how the AvaProtect tool works, examine its benefits in real-world trading scenarios, and help you decide if this new feature is right for your trading system.

Introducing the AvaProtect Tool
The AvaProtect tool is one of Avatrade's most popular features. It's a unique risk management tool that protects a specific trade against market volatility for a set period. If the trade results in a loss during this protection period, AvaTrade will refund the loss directly to your trading account. If the trade results in a profit, you can keep the entire amount.

With AvaProtect, you can enter the market with confidence, knowing that your trades are protected against losses. In exchange for this service, you simply pay a small initial premium. The cost varies depending on the trading volume, duration, and market volatility.

Here is a simple scenario that illustrates the importance of AvaProtect:

Suppose you decide to open a long position on the GBP/USD pair, anticipating a price increase the next day. To reduce risk, you activate the AvaProtect feature when opening the position.

- Instrument: GBP/USD
- Trading Volume: 0.20 lots ($20,000)
- Protection Period: 1 day
- AvaProtect Fee: $40

Against all odds, the market turns against you, and you end up with a losing position of $300. Under normal circumstances, you would have lost $300. But because you used AvaProtect, Avatrade will refund the full $300 directly to your trading account. So, instead of incurring a total loss of $300, you only lose $40, which is the cost of insuring your trade.

On the other hand, if the price rises as expected and you make a profit of $400, you keep the full $400, minus the $40 fee you paid for protection.

Benefits You Can Enjoy
The AvaProtect tool is designed to help traders achieve their goals and minimise risk. It offers several advantages, such as:

💰 Guarantees up to $1 million per trade

The main advantage of the AvaProtect tool is that it covers losses up to $1 million per trade. It can be considered a form of trading insurance that guarantees the safety of your funds in a specific trade.

This is a significant advantage, given the dynamic and unpredictable nature of the financial markets. With AvaProtect, you don't have to worry about losing money, as all losses are reimbursed by the broker. You can open as many positions as you want with minimal risk.

📱 Available on Mobile and Webtrader Platforms

Initially, AvaProtect was only available on Avatrade's mobile trading app, Avatrade Go, which can be downloaded for free from the Google Play Store (Android) and the App Store (Apple). Whether you're traveling or working from home, you remain in control of your risk management.

👛 The only cost is the initial commission.