AvaOptions – the AvaTrade’s Options Trading Platform

While most individual investors are familiar with trading cryptos, traditional Forex, stocks, commodities and other traditional asset classes, options trading remains a bit of a dark horse. But the truth is that options trading strategies are one of the most lucrative on the risk-reward basis and have been used by some of the most successful traders and investors. While options trading is available to many professional investors via institutional trading venues, many retail brokers and trading platforms don’t offer options trading at all. But thanks to AvaTrade Options Trading Platform (called AvaOptions),

investors based in the UK and European Union now have an opportunity to invest in this popular asset class. This article will review the AvaTrade Options platform, its main features and functionality, and explain what the option trading strategies are for those of you who don’t know. With AvaOptions, you can join the elite options traders’ community and benefit from the asymmetric risk-return profile of this asset class. In addition, AvaTrade offers a user-friendly online trading platform and mobile app where you can trade with confidence and learn how to make money trading. 

What is Options Trading? 

Options are some of the most popular financial derivatives and are widely used by professional and institutional investors. Because options are financial derivatives, they can be based on any underlying asset and have different characteristics. For example, there is only one company – Amazon, and it only has one type of Amazon shares traded on the stock exchange. But you can have hundreds of different option types on Amazon share, such as Call and Put options with different maturities and strike prices.

While some investors only use options to hedge their portfolios of traditional assets, others develop sophisticated trading strategies trading options only. Options trading also allows you to express different market views and offers multiple ways to profit from different market scenarios. While it will be difficult to explain all the features of AvaTrade options trading here in this article, we will try to explain the main features, and you can always go to AvaTrade Options Trading Guides to learn more.  

So, what is an Option? An option is a financial contract that gives you the right, but not an obligation, to buy (Call Option) or sell (Put Option) an underlying Asset at a Future Date (Maturity) at a predetermined price (Strike). Call Options are usually used to express the bullish view, and Put Options are usually used to express the bearish view. 

The easiest way to understand options is to think about it as insurance. For example, you might want to hedge your position in case the price of your portfolio goes down. In that case, you buy a Put Option that allows you to sell your shares at a predetermined price. Or, you might think that the price of an asset will go up, and then you can buy a Call Option that will allow you to buy this asset in the future at a lower price and immediately resell it at a higher price. For that, you pay the price called Option Premium, which is similar to Insurance Premium.

If the event happens and the price hits the Strike, you will be able to buy or sell assets at a predetermined price and profit. However, if the price moves against you, the only thing you will lose is a premium. In that case, your downside is limited (the price of the premium only), but the upside is uncapped (i.e. the price can increase indefinitely, at least in theory). That is why options trading is so popular. They provide asymmetric risk returns with unlimited upside but limited downside. 

Another popular options trading strategy is selling options, where those who write options essentially provide insurance to those who buy it. In that case, you can sell as many options and get paid a premium. Selling options could be a good way to generate cash, especially when markets are stable, but it is important to remember that you will HAVE TO pay and will be required to settle if you provide insurance. 

With AvaTrade options, you can execute different trading strategies and make money from buying and selling options. Now let us go into more detail and explain what you can expect from AvaTrade Options trading. 

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What is AvaTrade Options Platform? 

AvaTrade is one of the largest and most popular CFD brokers globally for those of you who don’t know. It has been pioneering online and forex trading since 2006 and currently has more than 200,000 clients globally. AvaTrade is headquartered in Dublin, Ireland and has regional offices in more than 15 countries. AvaTrade is regulated in 6 jurisdictions and provides trading access to the most popular financial instruments, including but not limited to cryptos, forex, stocks, commodities, indices and options. If you are interested in learning more about this broker, we encourage you to read this AvaTrade review but now let’s focus on AvaOptions.

AvaOptions is the trading platform of AvaTrade dedicated specifically to options trading. With AvaOptions, you can trade FX & Options visually, where you can structure any options trade via the interactive page. You can also have access to the historical charts that show you the past prices and Confidence intervals that show you where the market may be heating. In addition, AvaTrade options Profit/Loss shows you the risk and reward for the trade and is updating continuously. Both experienced and beginner options traders will find these features extremely useful.

AvaTrade also has an award-winning mobile app so that you can trade options and other asset classes on the go. AvaOptions provides market prices for more than 40 currency pairs and gold, allowing you to customize MarketWatch pages quickly. It also provides analytical tools to visualise current and historical realised and implied volatility, and implied volatility curves can show you the entire options market and its dynamics. 

AvaTrade options platform offers access to 13 different trading strategies to trade Spots, Puts, Calls and combination strategies, all from a single trading menu. And if you trade combinations strategies such as spreads, risk reversals and others, AvaOptions will automatically reduce spreads for such trades. In addition, when we were writing this piece, the team at AvaOptions have launched a comprehensive Options Strategy Guide that can help you learn about options and structure the right trade. 

When trading options, risk management is the most important, and AvaOptions provides access to a wide range of risk management tools. For example, you can see the net exposure via a bar chart and check the summary of your portfolio risk such as delta, vega and theta (also known as greeks). And Open Positions show you the risk measures for each trade. 

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AvaOptions Features

The AvaTrade options trading platform offers individual investors a place to learn and execute any options trading strategy. AvaOptions has several key features that make it unique, and some of the key features are as follows: 

Diverse Options Trading Strategies

With AvaOptions, you can trade more than 20+ currency pairs and any combination of call and put options, also known as spreads. As a result, you can create your optimal portfolio and execute trading strategies such as straddles, strangles, risk reversals, spreads, and many more. 

Robust Risk Management

With the AvaTrade options platform and its robust risk management capabilities, you can take full control over your portfolio and balance the risk/reward to match your view on the market and trading style. You can also run portfolio simulations to see how your options trading strategy would perform with no risk. It is fair to say that AvaTrade offers one of the best risk management capabilities available to individual investors. 

Hedge Your Risk or Make Money Selling Options

Whatever your market view is, with AvaTrade options trading, you can express it and make money.  You can hedge your trading position or portfolio of traditional assets via buying options, or you can generate additional income by selling options. 

Flexibility & Full Control

With AvaTrade, you can trade options with stop and limit orders that the predetermined premium level can trade. That can give you additional control over each trade entry and exit point. In addition, AvaTrade offers a full set of tools to improve pricing efficiency and transparency and all your trading strategies to be packaged to reduce costs. 

Automated Trading

Automated trading is becoming extremely popular in recent years, and many Forex brokers are starting to offer this capability. Automated trading is a computer program or algorithm that allows you to trade on autopilot for those who don’t know. The computer program will analyse the market and make short-term price move predictions recommending buy or Sell trades. It also executes trade automatically, thus obliterating the human element. AvaTrade offers a fully automated trading capability and works with some of the largest social trading platforms, such as ZuluTrade. 

Is AvaTrade Options Trading Scam or Legit? 

AvaTrade is one of the best CFD brokers, with multiple offices and more than 200,000 active options traders. The company has been around since 2006 and is regulated in 6 jurisdictions, including the European Union. So let us answer this question straight away – AvaTrade forex broker is not a scam and is a totally legitimate trading platform. In fact, with AvaTrade, options trading has never been easier for retail investors. 

But it is important to remember that options are more complex financial instruments and require a good understanding of this asset class. You can not simply bet on the option price to go up or down. Instead, you need to understand hot Call and Put options work and the greeks that measure the different factors that affect the option prices. 

But due to its risk profile, options trading strategies are one of the most attractive, and if you take time to learn options trading, it will definitely improve the return profile of your trades. And thanks to AvaTrade Options Trading Guides, you don’t have to go far to find all the information you need. 

We also encourage you to use the AvaTrade Options free demo account to familiarise yourself with the platform first before investing real money. With the AvaTrade options demo account, you can have all the real AvaTrade option platform functionality, but you will invest paper money, i.e. not the real one. With an AvaTrade demo account, you can access all the analytical tools and features, run simulation trades and see how your strategy would perform in the real market risk-free. You can open a free AvaTrade options demo account in a few minutes and start testing the platform’s functionality in no time. 

In conclusion, we want to say that the AvaTrade options trading platform is best available to individual investors. AvaTrade has been pioneering online trading since 2006, and with AvaTrade options, it took options trading to a new level. So if you are interested in trading options, AvaTrade should be the broker of your choice. But please remember that options are derivative contracts and are complex financial instruments, so you really need to take time to learn and understand them before starting to trade. But thanks to the AvaTrade Options Trading Guides and AvaTrade Options Demo Account, you should be able to learn fast.