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Trading Conditions & Charges

Explanation of Terms: *from table headings

  • Instrument – The FX currency pair or underlying asset of the CFD product to be traded.
  • Country – The country that the equity or bond is based in.
  • Lot size – The lot size traded on each platform (Note: Ava Trader lot sizes represent the minimum lot size tradable. MT4 represents the standard lot size).
  • Standard Spread – The difference between the BID & the ASK price quote for each instrument under normal market conditions.
  • Leverage – The usage of margin to trade on a larger capital base. Leverage can significantly increase your losses as well as your gains.
  • Margin Per Lot – The required margin to open a single lot of each instrument (Note: It is shown in notional terms).
  • Increment – The minimum increment of price movement for each instrument.
  • Overnight Interest Sell/Buy – The overnight interest debited/credited in annual % terms for each instrument.
  • Trading Time – The time that trading is available for the specified instrument.
  • Quoted Months – The months of the futures contracts that AvaTrade quotes on its platforms.
  • Exchange – The exchange of the underlying asset.
  • Units – The unit that each lot size is quoted in.

Risk Warning:

Trading CFD's on margin carries a high level of risk, and may not be suitable for all investors.

TRADING CHARGES:

All trading performed on this website/platform shall be subject to the following potential charges:
  • SPREADS
  • OVERNIGHT INTEREST
  • MATURITY ROLLOVER
  • CORPORATE ACTIONS
  • INACTIVITY FEE
See below for detailed calculations for each instrument type charge:

TRADING CONDITIONS:

  • Spreads:

    1. All Spreads are Over Market.
    2. FX Standard Spreads are as stated under Normal Market Conditions.
    3. Gold & Silver spreads may be wider than stated from approx 22:00 - 02:00 GMT.
    4. Crude & Brent Oil spreads may be wider than stated from approx 22:00 - 05:00 GMT.
    5. Crude Oil & Natural Gas spreads may be wider during Weekly Inventories.
    6. 1 PIP FX Pairs = 0.0001; 1 PIP JPY FX Pairs = 0.01.
    7. FX Floating: Typical Spreads are an indication only and may widen due to volatile market conditions
    8. FX Floating: Typical Spreads are derived from the median value of the respective spreads during trading hours (07.00-18.00 GMT) from a previous quarter.
    9. FX Option Spreads show typical bid-offer spreads for 1-month at-the-money options under normal market conditions.
    10. FX Options can be traded online up to 24 hours prior to their expiration.
    11. FX Options expire at the times indicated in the platform, which correspond to 10:00am New York time.
    12. All FX Options are European style vanilla options. At expiration, all in-the-money options will be automatically closed at intrinsic value.
    13. FX Options trading is not currently available for EU customers.
  • Overnight Interest Rates:

    1. All Overnight Interest Rates are indicative and subject to change.
    2. MT4 FX, Gold & Silver Positions: Saturday/Sunday Overnight Interest will be Debited/Credited on the Wednesday before.
    3. MT4 Non-FX (excl. Gold & Silver) Positions: Saturday/Sunday Overnight Interest will be Debited/Credited on the Friday before.
  • Margin:

    1. Margin requirements can increase based on position size.
  • Trading Times:

    1. Trading platforms may open or close a few minutes after or prior to the listed times. This is dependent on the individual exchanges that the contracts are traded on.
    2. Trading Hours may change due to Daylight Savings Time.
  • Maximum Trades/Orders:

    1. MetaTrader accounts are limited to a maximum of 500 open trades/pending orders (combined total) at any one time.
    2. MetaTrader Minimum Nominal Trade Size = 0.01.
  • Bitcoin / Litecoin:

    1. *Bitcoin Weekly & *Litecoin Weekly – Expire Weekly. Every Week All OPEN positions WILL be CLOSED at market rate every Friday @ 20.00 GMT.
    2. **Bitcoin Mini & **Litecoin Mini – No trading available over the weekend; No Expire

Your access to and use of the website and/or platform constitutes your acceptance of these Trading Conditions and any other legal notices and statements contained on same. Ava may modify these Trading Conditions at any time and without prior notice. Your continued access to and use of the website and/or platform constitutes your acceptance of these Trading Conditions as modified.

The FX Fixed Trading Conditions display the Standard Bid-Ask Spread (Pips) for FX Instruments unless otherwise stated. Standard Spreads are as stated under Normal Market Conditions. Spreads can widen depending on market conditions up to a maximum of Standard Spread x3 (Triple).

Spread Cost Formula: Spread x Trade Size = Spread Charge in Secondary Currency*

*Secondary Currency is the Second Currency quoted in an FX pair (CUR1/CUR2: USD/JPY, EUR/USD, etc.)

Example 

For a 1,000 EUR/USD Trade, with a Spread of 3 pips (0.0003), the calculation is as follows:

0.0003 X 1,000 = $0.30*

AVATRADE is a market maker and is therefore compensated through the Bid-Ask spread except when otherwise stated. AVATRADE does not charge commissions on any trade.

All Instruments are traded on Margin allowing you to Leverage your positions. The FX Fixed Trading Conditions display both Margin & Leverage Amounts; Margin is displayed as a Percentage (%) while Leverage is displayed as a Ratio.

Percentage Margin Formula: Trade Size x Margin (%) = Margin Required in Primary Currency*

Leverage Margin Formula: Trade Size / Leverage = Margin Required in Primary Currency*

*Primary Currency is the First Currency quoted in an FX pair (CUR1/CUR2: USD/JPY, EUR/USD, etc.)

Example 

For a 1,000 EUR/USD Trade, with a Margin Requirement of 0.50% or Leverage of 200:1, the calculation are as follows:

Percentage Margin Requirement: 1,000 x 0.005 = €5.00

Leverage Margin Requirement: 1,000 / 200 = €5.00


The FX Fixed Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a 360 day basis for holding a position open past our End of Day time. These rates are displayed in the "Overnight Interest - Buy" and “Overnight Interest - Sell" columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.

You can use the following formula to calculate your Overnight Interest amount:

Trade Amount x Overnight Interest x Number of days = Overnight Interest Charged/Paid*

                                          360 Days

*Overnight Interest Charged/Paid will be calculated in the Primary Currency; Primary Currency is the First Currency quoted in an FX pair (CUR1/CUR2: USD/JPY, EUR/USD, etc.)

Example 

For a 1,000 EUR/USD Trade, with a an Overnight Interest Buy (or Sell) rate of -1.00% and subject to a charge for 1 day, the calculation is as follows:

(1,000 x -0.01 x 1)/360 = -10/360 = -0.02778 = -€0.03* rounded

 

The FX Floating (MT4 only) Trading Conditions display the Minimum & Typical Bid-Ask Spreads (Pips) for Floating Instruments unless otherwise stated. Typical Spreads are derived from the median value of the respective spreads during trading hours (07.00-18.00 GMT) from the previous quarter.

Spread Cost Formula: Spread x Trade Size = Spread Charge in Secondary Currency*

*Secondary Currency is the Second Currency quoted in an FX pair (CUR1/CUR2: USD/JPY, EUR/USD, etc.)

Example 

For a 1,000 EUR/USD Trade, with a Spread of 3 pips (0.0003), the calculation is as follows:

0.0003 X 1,000 = $0.30*


AVATRADE is a market maker and is therefore compensated through the Bid-Ask spread except when otherwise stated. AVATRADE does not charge commiss ions on any trade.

All Instruments are traded on Margin allowing you to Leverage your positions. The FX Floating (MT4 only) Trading Conditions display both Margin & Leverage Amounts; Margin is displayed as a Percentage (%) while Leverage is displayed as a Ratio.

Percentage Margin Formula: Trade Size x Margin (%) = Margin Required in Primary Currency*

Leverage Margin Formula: Trade Size / Leverage = Margin Required in Primary Currency*

*Primary Currency is the First Currency quoted in an FX pair (CUR1/CUR2: USD/JPY, EUR/USD, etc.)

Example 

For a 1,000 EUR/USD Trade, with a Margin Requirement of 0.25% or Leverage of 400:1, the calculation are as follows:

Percentage Margin Requirement: 1,000 x 0.0025 = €2.50*

Leverage Margin Requirement: 1,000 / 400 = €2.50*


The FX Floating (MT4 only) Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a 360 day basis for holding a position open past the End of Day time. These are displayed in the "Overnight Interest - Buy" and “Overnight Interest - Sell" columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.

You can use the following formula to calculate your Overnight Interest amount:

Trade Amount x Overnight Interest x Number of days Overnight Interest Charged/Paid*
                                           360 Days

*Overnight Interest Charged/Paid will be calculated in the Primary Currency; Primary Currency is the First Currency quoted in an FX pair (CUR1/CUR2: USD/JPY, EUR/USD, etc.).

Example

For a 1,000 EUR/USD Trade, with an Overnight Interest Buy (or Sell) rate of -1.00% and subject to a charge for 1 day, the calculation is as follows:

(1.000 x -0,01 x 1)/360 = -10/360 = -0,02778 = -€0,03* rounded

The Commodities Trading Conditions display the Standard Bid-Ask Spread OR 'Spread Over Market' for Commodity Instruments unless otherwise stated. Standard Spreads are as stated under Normal Market Conditions while the 'Spread Over Market' is the Mark-up AVATRADE adds to the Current Market Spread.

Spread Cost Formula: Spread x Trade Size = Spread Charge in Currency Instrument is denominated in.

Example 

For a 10 barrel Crude Oil Trade, with a Spread of 4 pips ($0.04), the calculation is as follows:

0.04 X 10 = $0.40*


AVATRADE is a market maker and is therefore compensated through the Bid-Ask spread except when otherwise stated. AVATRADE does not charge commissions on any trade.

All Instruments are traded on Margin allowing you to Leverage your positions. The Commodities Trading Conditions display Margin Amounts as a Percentage (%).

Percentage Margin Formula: Position Size x Current Price x Margin (%) = Margin Required*

* Margin Required is calculated in the Currency the Instrument is Denominated in.

Example 

For a 10 barrel Crude Oil Trade, with a Market Price of $98.00 and a Margin Requirement of 1.00%, the calculation is as follows:

Percentage Margin Requirement: 10 x 98 x 0.01 = $9.80*


The Commodities Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a 360 day basis for holding a position open past the End of Day time. These are displayed in the "Overnight Interest - Buy" and “Overnight Interest - Sell" columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.

You can use the following formula to calculate your Overnight Interest amount:

Trade Size x Current Market Price x Overnight Interest x Number of days

                                           360 Days

Overnight Interest Charged/Paid*

*Overnight Interest Charged/Paid is calculated in the Currency the Instrument is Denominated in.

Example 

For a 10 barrel Crude Oil Trade, with a Market Price of $98.00 and an Overnight Interest Buy (or Sell) rate of -0.20%, and subject to a charge for 1 day, the calculation is as follows:

(10 x 98.00 x -0.002 x 1)/360 = -1.96/360 = -0.005444 = -$0.01* rounded.


AVATRADE quotes futures contracts on many of its non-FX instruments; specified under the "Quoted Months" column of the Trading Conditions for that Instrument.

When a Futures Contract approaches its Expiry Date or First Notice Date AVA will Rollover all Open Positions to the next Tradable Contract at the time specified in the CFD Rollover Dates section of our website.

Clients with Open Positions who do not wish to have their positions Rolled Over into the Next Contract should close their positions before the Scheduled Rollover.

AVATRADE adjusts accounts with Open Positions in Maturing Instruments to ensure Clients do not Gain/Lose due to differences in Price between Old & New contracts. Clients will incur costs in relation to the Spread Cost in closing the Old contract and Opening the New Contract and a Standard Overnight Interest charge.

To Calculate the Rollover AVATRADE takes a MID Rate for the Old Contract (Current Traded Contract) and the New Contract (Next Tradable Contract) at exactly the same time before the contract closes for trading. We then calculate the Difference in Price between Contracts, adjust this for our Spread and Overnight Interest Costs, and the resulting amount is either Credited or Debited to the clients account via Overnight Interest.

Note: There are NO other costs incurred by Clients involved in the rolling over of Futures Contracts.

Formula used by AVA for calculating a Rollover Charge:

(Amount x (New Contract Price - Old Contract Price)) + (Spread Costs*) + (Overnight Interest Costs)

*Spread Costs are calculated based on Market Spreads at the time of the Rollover Calculation.

General Rule of Thumb:

New Price < Old Price = Credit for Long Positions / Debit for Short Positions

New Price > Old Price = Debit for Long Positions / Credit for Short Positions

Example 

For a 10 barrel Crude Oil Trade, with a Market Price of $98.50 and a Difference in Contracts of +50 Pips ($0.50), the calculation is as follows:

Long Position: (10 x -0.50) + (-0.04 x 10) + ((10 x 98.50 x -0.002 x 1)/360)) = -5.00 + (-0.40) + (-0.01) = -$5.41
Short Position: (10 x +0.50) + (-0.04 x 10) + ((10 x 98.50 x -0.002 x 1)/360)) = 5.00 + (-0.40) + (-0.01) = +$4.59


AVATRADE cannot provide Rollover Adjustment Information before the Adjustment occurs, if clients do not wish to incur a Rollover Adjustment please close Open Positions in Maturing Instruments before the Scheduled Rollover.

The Stock Indices Trading Conditions display the 'Spread Over Market' for Stock Index Instruments unless otherwise stated. The 'Spread Over Market' is the Mark-up AVATRADE adds to the Current Market Spread.

Spread Cost Formula: Spread x Trade Size = Spread Charge in Currency Instrument is denominated in.

Example 1

For a 1 index S&P500 Trade, with a Spread of 75 Pips ($0.75), the calculation is as follows:

0.75 X 1 = $0.75*


AVATRADE is a market maker and is therefore compensated through the Bid-Ask spread except when otherwise stated. AVATRADE does not charge commissions on any trade.

All Instruments are traded on Margin allowing you to Leverage your positions. The Stock Indices Trading Conditions display Margin Amounts as a Percentage (%).

Percentage Margin Formula: Position Size x Current Price x Margin (%) = Margin Required*

* Margin Required is calculated in the Currency the Instrument is Denominated in.

Example 

For a 1 Index S&P500 Trade, with a Market Price of $1400 and a Margin Requirement of 0.50%, the calculation is as follows:

Percentage Margin Requirement: 1 x 1, 400 x 0.005 = $7.00*


The Stock Indices Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a 360 day basis for holding a position open past the End of Day time. These are displayed in the "Overnight Interest - Buy"and “Overnight Interest - Sell" columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.

You can use the following formula to calculate your Overnight Interest amount:

Trade Size x Current Market Price x Overnight Interest x Number of days

                                           360 Days

Overnight Interest Charged/Paid*

*Overnight Interest Charged/Paid is calculated in the Currency the Instrument is Denominated in.

Example 

For a 1 Index S&P500 Trade, with a Market Price of $1400 and an Overnight Interest Buy (or Sell) rate of -0.50%, and subject to a charge for 1 day, the calculation is as follows:

(1 x 1,400 x -0.005 x 1)/360 = -7.00/360 = -0.01944 = -$0.02* rounded.

 

AVATRADE quotes futures contracts on many of its non-FX instruments; specified under the "Quoted Months" column of the Trading Conditions for that Instrument.

When a Futures Contract approaches its Expiry Date or First Notice Date AVA will Rollover all Open Positions to the next Tradable Contract at the time specified in the CFD Rollover Dates section of our website.

Clients with Open Positions who do not wish to have their positions Rolled Over into the Next Contract should close their positions before the Scheduled Rollover.

AVATRADE adjusts accounts with Open Positions in Maturing Instruments to ensure Clients do not Gain/Lose due to differences in Price between Old & New contracts. Clients will incur costs in relation to the Spread Cost in closing the Old contract and Opening the New Contract and a Standard Overnight Interest  charge.

To Calculate the Rollover AVA takes a MID Rate for the Old Contract (Current Traded Contract) and the New Contract (Next Tradable Contract) at exactly the same time before the contract closes for trading. We then calculate the Difference in Price between Contracts, adjust this for our Spread and Overnight Interest Costs, and the resulting amount is either Credited or Debited to the clients account via Overnight Interest.

Note: There are NO other costs incurred by Clients involved in the rolling over of Futures Contracts.

Formula used by AVA for calculating a Rollover Charge:

(Amount x (New Contract Price - Old Contract Price)) + (Spread Costs*) + (Overnight Interest Costs)

*Spread Costs are calculated based on Market Spreads at the time of the Rollover Calculation.

General Rule of Thumb:

New Price < Old Price = Credit for Long Positions / Debit for Short Positions

New Price > Old Price = Debit for Long Positions / Credit for Short Positions

Example 

For a 1 index S&P500 Trade, with a Market Price of $1425 and a Difference in Contracts of +2500 Pips ($25), the calculation is as follows:

Long Position: (1 x -25.00) + (-0.50 x 1) + ((1 x 1425 x -0.005 x 1)/360)) = -25.00 + (-0.50) + (-0.02) = -$25.52
Short Position: (1 x +25.00) + (-0.50 x 1) + ((1 x 1425 x -0.005 x 1)/360)) = 25.00 + (-0.50) + (-0.02) = +$24.48


AVATRADE cannot provide Rollover Adjustment Information before the Adjustment occurs, if clients do not wish to incur a Rollover Adjustment please close Open Positions in Maturing Instruments before the Scheduled Rollover.

The Individual Equities Trading Conditions display the 'Spread Over Market' for Individual Equity Instruments unless otherwise stated. The 'Spread Over Market' is the Mark-up AVATRADE adds to the Current Market Spread.

Spread Cost Formula: Spread x Trade Size = Spread Charge in Currency Instrument is denominated in.

Example 

For a trade of 1 APPLE share, with a Spread of 12 pips (0.12), the calculation is as follows:

0.12 X 1 = $0.12*


AVATRADE is a market maker and is therefore compensated through the Bid-Ask spread except when otherwise stated. AVATRADE does not charge commissions on any trade.

All Instruments are traded on Margin allowing you to Leverage your positions. The Individual Equities Trading Conditions display Margin Amounts as a Percentage (%).

Percentage Margin Formula: Position Size x Current Price x Margin (%) = Margin Required*

*Margin Required is calculated in the Currency the Instrument is Denominated in.

Margin on specific Individual Equities, existing & new positions, will be doubled from the standard margin 48 hours prior to earnings releases for a period of 72 hours total.

Example 

For a trade of 1 APPLE share with a Market Price of $500 and a Margin Requirement of 5.00%, the calculation is as follows:

Percentage Margin Requirement: 1 x 500 x 0.05 = $25.00*


The Individual Equities Trading Conditions display the Over-Night Interest Rates Charged/Paid on a 360 day basis for holding a position open past the End of Day time. These are displayed in the "Overnight Interest - Buy" and “Overnight Interest - Sell" columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.

You can use the following formula to calculate your Overnight Interest amount:

Trade Size x Current Market Price x Overnight Interest x Number of days

                                           360 Days

Overnight Interest Charged/Paid*

* Overnight Interest Charged/Paid is calculated in the Currency the Instrument is Denominated in.

Example 

For a trade of 1 APPLE share, with a Market Price of $500 and an Overnight Interest Buy (or Sell) rate of -2.55%, and subject to a charge for 1 day, the calculation is as follows:

(1 x 500 x -0.0255 x 1)/360 = -12.75/360 = -0.03542 = -$0.04* rounded.

 

Individual Equities may at some stage partake in a Corporate Action; these can include Dividends, Rights Issues, Stock/Reverse Splits, Mergers, Acquisitions, Takeovers etc.

Dividends: For any individual equity on the AVATRADE trading platforms that declares a dividend, AVATRADE will make an Adjustment to every account that holds said equity, at the end of the cum-dividend day. This will be one day before the ex-dividend day.

The adjustment made to accounts will be:

  1. Long Positions will be Credited with 90% of the Gross dividend.

    (Amount of Shares x Gross Dividend) x 0.90
  2. Short Positions will be Debited with 100% of the Gross dividend.

    (Amount of Shares x Gross Dividend) x -1

Note: There are no other costs to clients in relation to Dividends.

Example 

For a trade of 1 APPLE share, with a GROSS Div. of $1.00, the calculation is as follows:

Long Position: (1 x 1.00) x 0.90 = 1.00 x 0.90 = +$0.90
Short Position: (1 x 1.00) x -1 = 1.00 x -1 = -$1.00


For ALL other Corporate Actions: Rights Issue, Stock/Reverse Splits, Mergers, Acquisitions, Takeovers etc, and as these actions can happen suddenly and without prior knowledge, Open Positions and Orders will be Closed/Removed at the end of the cum-action day at market price on the particular equity.

Note: There are no costs to clients in relation to these other Corporate Actions.

The Bonds Trading Conditions display the 'Spread Over Market' for Bond Instruments unless otherwise stated. The 'Spread Over Market' is the Mark-up AVATRADE adds to the Current Market Spread.

Spread Cost Formula: Spread x Trade Size = Spread Charge in Currency Instrument is denominated in.

Example 

For a trade of 10 Bonds on the 5 Year US T-NOTE, with a Spread of 5 pips (0.05), the calculation is as follows:

0.05 X 10 = $0.50*


AVATRADE is a market maker and is therefore compensated through the Bid-Ask spread except when otherwise stated. AVATRADE does not charge commissions on any trade.

All Instruments are traded on Margin allowing you to Leverage your positions. The Bonds Trading Conditions display Margin Amounts as a Percentage (%).

Percentage Margin Formula: Position Size x Current Price x Margin (%) = Margin Required*

* Margin Required is calculated in the Currency the Instrument is Denominated in.

Example 

For a trade of 10 Bonds on the 5 Year US T-NOTE, with a Market Price of $124.50 and a Margin Requirement of 1.00%, the calculation is as follows:

Percentage Margin Requirement: 10 x 124.50 x 0.01 = $12.45*


The Stock Indices Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a 360 day basis for holding a position open past the End of Day time. These are displayed in the "Overnight Interest - Buy"and “Overnight Interest - Sell" columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.

You can use the following formula to calculate your Overnight Interest amount:

Trade Size x Current Market Price x Overnight Interest x Number of days

                                           360 Days

Overnight Interest Charged/Paid*

*Overnight Interest Charged/Paid is calculated in the Currency the Instrument is Denominated in.

Example 

For a 1 Index S&P500 Trade, with a Market Price of $1400 and an Overnight Interest Buy (or Sell) rate of -0.50%, and subject to a charge for 1 day, the calculation is as follows:

(1 x 1,400 x -0.005 x 1)/360 = -7.00/360 = -0.01944 = -$0.02* rounded.

 

AVATRADE quotes futures contracts on many of its non–FX instruments; specified under the "Quoted Months" column of the Trading Conditions for that Instrument.

When a Futures Contract approaches its Expiry Date or First Notice Date AVA will Rollover all Open Positions to the next Tradable Contract at the time specified in the CFD Rollover Dates section of our website.

Clients with Open Positions who do not wish to have their positions Rolled Over into the Next Contract should close their positions before the Scheduled Rollover.

AVATRADE adjusts accounts with Open Positions in Maturing Instruments to ensure Clients do not Gain/Lose due to differences in Price between Old & New contracts. Clients will incur costs in relation to the Spread Cost in closing the Old contract and Opening the New Contract and a Standard Overnight Interest charge.

To Calculate the Rollover AVA takes a MID Rate for the Old Contract (Current Traded Contract) and the New Contract (Next Tradable Contract) at exactly the same time before the contract closes for trading. We then calculate the Difference in Price between Contracts, adjust this for our Spread and Overnight Interest Costs, and the resulting amount is either Credited or Debited to the clients account via Overnight Interest.

Note: There are NO other costs incurred by Clients involved in the rolling over of Futures Contracts.

Formula used by AVA for calculating a Rollover Charge:

(Amount x (New Contract Price – Old Contract Price)) + (Spread Costs*) + (Overnight Interest Costs)

*Spread Costs are calculated based on Market Spreads at the time of the Rollover Calculation.

General Rule of Thumb:

New Price < Old Price = Credit for Long Positions / Debit for Short Positions

New Price > Old Price = Debit for Long Positions / Credit for Short Positions

Example 

For a trade of 10 Bonds on the 5 Year US T-NOTE, with a Market Price of $124.68 and a Difference in Contracts of +18 Pips ($0.18), the calculation is as follows:

Long Position: (10 x -0.18) + (-0.05 x 10) + ((1 x 124.68 x -0.005 x 1)/360)) = -1.80 + (-0.50) + (-0.02) = -$2.32
Short Position: (10 x +0.18) + (-0.05 x 10) + ((1 x 124.68 x -0.005 x 1)/360)) = 1.80 + (-0.50) + (-0.02) = +$1.28


AVATRADE cannot provide Rollover Adjustment Information before the Adjustment occurs, if clients do not wish to incur a Rollover Adjustment please close Open Positions in Maturing Instruments before the Scheduled Rollover.

The Exchange Traded Funds Trading Conditions display the 'Spread Over Market' for Bond Instruments unless otherwise stated. The 'Spread Over Market' is the Mark-up AVATRADE adds to the Current Market Spread.

Spread Cost Formula: Spread x Trade Size = Spread Charge in Currency Instrument is denominated in.

Example 

For a trade of 10 Financial Select Sector SPDR shares, with a Spread of 6 pips (0.06), the calculation is as follows:

0.06 X 10 = $0.60*


AVATRADE is a market maker and is therefore compensated through the Bid-Ask spread except when otherwise stated. AVATRADE does not charge commissions on any trade.

All Instruments are traded on Margin allowing you to Leverage your positions. The Exchange Traded Funds Trading Conditions display Margin Amounts as a Percentage (%).

Percentage Margin Formula: Position Size x Current Price x Margin (%) = Margin Required*

* Margin Required is calculated in the Currency the Instrument is Denominated in.

Example 

For a trade of 10 Financial Select Sector SPDR shares, with a Market Price of $18.50 and a Margin Requirement of 5.00%, the calculation is as follows:

Percentage Margin Requirement: 10 x 18.50 x 0.05 = $9.25*


The Exchange Traded Funds Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a 360 day basis for holding a position open past the End of Day time. These are displayed in the "Overnight Interest - Buy" and “Overnight Interest - Sell" columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.

You can use the following formula to calculate your Overnight Interest amount:

Trade Size x Current Market Price x Overnight Interest x Number of days

                                           360 Days

Overnight Interest Charged/Paid*

*Overnight Interest Charged/Paid is calculated in the Currency the Instrument is Denominated in.

Example 

For a trade of 10 Financial Select Sector SPDR shares, with a Market Price of $18.50 and an Overnight Interest Buy (or Sell) rate of -2.855%, and subject to a charge for 1 day, the calculation is as follows:

(10 x 18.50 x -0.02855 x 1)/360 = -5.2818/360 = -0.01467 = -$0.01* rounded.

 

Exchange Traded Funds (ETF's) may at some stage partake in a Corporate Action; these can include Dividends, Rights Issues, Stock/Reverse Splits, etc.

Dividends: For any ETF on the AVATRADE trading platforms that declares a dividend, AVATRADE will make an Adjustment to every account that holds said equity, at the end of the cum-dividend day. This will be one day before the ex-dividend day.

The adjustment made to accounts will be:

  1. Long Positions will be Credited with 90% of the Gross dividend.

    (Amount of Shares x Gross Dividend) x 0.90
  2. Short Positions will be Debited with 100% of the Gross dividend.

    (Amount of Shares x Gross Dividend) x -1

Note: There are no other costs to clients in relation to Dividends.

Example 

For a trade of 10 Financial Select Sector SPDR shares, with a GROSS Div. of $1.00, the calculation is as follows:

Long Position: (1 x 1.00) x 0.90 = 1.00 x 0.90 = +$0.90
Short Position: (1 x 1.00) x -1 = 1.00 x -1 = -$1.00

For ALL other Corporate Actions: Rights Issue, Stock/Reverse Splits, etc. and as these actions can happen suddenly and without prior knowledge, Open Positions and Orders will be Closed/Removed at the end of the cum-action day at market price on the particular equity.

Note: There are no costs to clients in relation to these other Corporate Actions.

The AVAOPTIONS Trading Conditions display the Typical Bid-Ask Spreads (Pips) for Instruments (Spot Spread) as well as for Options on the Instruments (Option Spread). Standard Spreads are as stated under Normal Market Conditions. Option spreads are based on 1-month at-the-money options.

Spread Cost Formula: Spread x Trade Size = Spread Charge in Secondary Currency*

*Secondary Currency is the Second Currency quoted in an FX pair (CUR1/CUR2: USD/JPY, EUR/USD, etc.)

Example

For a 10,000 EUR/USD Spot Trade, with a Spread of 2.1 pips (0.00021), the calculation is as follows:

0.00021 X 10,000 = $2.10*

AVATRADE is a market maker and is therefore compensated through the Bid-Ask spread except when otherwise stated. AVATRADE does not charge commissions on any trade

The AVAOPTIONS Trading Platform allows traders to buy and sell options on Instruments, typically FX pairs, as shown in the Trading Conditions.

When purchasing an option, the cost of the option (also called the Option Premium) is deducted from the account cash balance, using free available cash. Free available cash is the cash balance that is in excess of the Required Margin.

When selling an option, the cash proceeds of the sale are immediately credited to the account cash balance. If writing an option (selling an option short), any required margin must be met from free available cash.

If the account does not have sufficient free available cash to meet the required margin, the trade will not be executed.

Option Premium is quoted in Price of the Second Currency.

Option Premium Formula: Price x Trade Size = Cost in Secondary Currency*

*Secondary Currency is the Second Currency quoted in an FX pair (CUR1/CUR2: USD/JPY, EUR/USD, etc.)

Example

For a 10,000 EUR/USD CALL OPTION offered at 0.00560, the calculation is as follows:

0.00560 X 10,000 = USD 56.00

If the Account Currency is not the same as the Second Currency, the Option Premium will be immediately converted into the Account Currency at the prevailing spot rate, which can be found in the Open Positions window.

AVATRADE is a market maker and is therefore compensated through the Bid-Ask spread except when otherwise stated. AVATRADE does not charge commissions on any trade

The AVAOPTIONS Trading Platform allows traders to buy and sell Spot and Options on FX and other underlying instruments on Margin, allowing for leveraged trading. The AVAOPTIONS Trading Conditions display both Margin and Leverage; Margin is displayed as a percentage, while Leverage is displayed as a Ratio.

Options are leveraged instruments, and cannot be purchased on Margin. The cost of a purchased option must be met from free available cash, which is the amount by which the account cash balance exceeds Required Margin. Similarly, margin required upon the sale (writing) of an option must be met with free available cash.

For each underlying instrument (e.g. currency pair), margin is required to cover the worst outcome observed under a number of scenarios. Specifically, the underlying instrument is moved up and down by the margin percentage (e.g. 0.50%). Option and spot position values are recalculated at these points and five points in between, at two levels of implied volatility: at an increase of about 30%, and at 0%. The worst case outcome for the portfolio is taken as Required Margin for that instrument.

This is repeated for every instrument. The sum of required margin for each instrument is the total Required Margin, which can be seen at all times in the Account section of the AVAOPTIONS platform, and in all reports. Required Margin can also be seen in the Order Window before executing any trade.

The AVAOPTIONS Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a 360 day basis for holding a spot position or other instrument open past our End of Day time. These rates are displayed in the "Overnight Interest - Buy" and “Overnight Interest - Sell" columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.

Overnight Interest is not charged for any options positions.

You can use the following formula to calculate your Overnight Interest amount using the published rates:

Trade amount x overnight interest rate x number of days = Interest Charged/Paid*

                                           360 Days

*Interest Charged/Paid will be calculated in the Primary Currency; Primary Currency is the First Currency quoted in an FX pair (CUR1/CUR2: USD/JPY, EUR/USD, etc.)

Example

For a 10,000 EUR/USD Trade, with a an Overnight Interest Buy (or Sell) rate of -1.00% and subject to a charge for 1 day, the calculation is as follows:

(10,000 x -0.0100 x 1)/360 = -100/360 = -0.2778 = -€0.28* rounded

Customer acknowledges that the Customer's trading account may be subject to an inactivity fees unless prohibited by law. After 3 consecutive months of non-use ("Inactivity Period"), and every successive Inactivity Period, an inactivity fee will be deducted from the value of the Customer’s trading account. This fee is outlined below and subject to client relevant currency based account:

Inactivity Fee:

  • USD Account: $25

  • EUR Account: €20

  • GBP Account: £16

Applicable fees subject to change periodically.