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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 daily % 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

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FX

FX Spread Calculation

The FX 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.

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 compensated through the Bid-Ask spread, except when otherwise stated.

AvaTrade does not charge commissions on any trade.

FX Margin/Leverage Calculation

All Instruments are traded on Margin allowing you to Leverage your positions. The FX 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

FX Buy/Sell Overnight Interest Calculation

The FX Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a daily 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 Daily Overnight Interest amount:

Trade Amount x Daily Overnight Interest = Daily Overnight Interest Charged/Paid*

*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 Daily Overnight Interest Buy (or Sell) rate of -0.0053% and subject to a charge for 1 day, the calculation is as follows:

1,000 x -0.000053 = -0.053 = -€0.05* rounded

Note: Ava Trade platforms display overnight interest (swaps) in annualised terms.

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FX

FX Spread Calculation

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 compensated through the Bid-Ask spread, except when otherwise stated.

AvaTrade does not charge commissions on any trade.

FX Margin/Leverage Calculation

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

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

FX Buy/Sell Overnight Interest Calculation

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

Trade Amount x Daily Overnight Interest = Daily Overnight Interest Charged/Paid*

*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 Daily Overnight Interest Buy (or Sell) rate of -0.0053% and subject to a charge for 1 day, the calculation is as follows

1,000 x -0.000053 = -0.053 = -€0.05* rounded

Note: Ava Trade platforms display overnight interest (swaps) in annualised terms.

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COMMODITY MATURITIES AND ROLLOVERS

Commodities Spread Calculation

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 compensated through the Bid-Ask spread, except when otherwise stated.

AvaTrade does not charge commissions on any trade.

Commodities Margin Calculation

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*

Commodities Buy/Sell Overnight Interest Calculation

The Commodities Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a daily 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 End of Day Market Price x Daily Overnight Interest = Daily 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 an End of Day Market Price of $50.00 and a Daily Overnight Interest Buy (or Sell) rate of -0.0028%, and subject to a charge for 1 day, the calculation is as follows:

10 x 50.00 x -0.000028 = -0.014 = -$0.01* rounded.

Note: Ava Trade platforms display overnight interest (swaps) in annualised terms.

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STOCK INDICES

Stock Indices Spread Calculation

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 US500 Trade, with a Spread of 75 Pips ($0.75), the calculation is as follows:

0.75 X 1 = $0.75*

AvaTrade is compensated through the Bid-Ask spread, except when otherwise stated.

AvaTrade does not charge commissions on any trade.

Stock Indices Margin Calculation

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 US500, based on 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*

Stock Indices Buy Sell Overnight Interest Calculation

The Stock Indices Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a daily 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 End of Day Market Price x Daily Overnight Interest = Daily Overnight Interest Charged/Paid*

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

Example

For a 1 Index US500 Trade, with an End of Day Market Price of $2000 and a Daily Overnight Interest Buy (or Sell) rate of -0.0028%, and subject to a charge for 1 day, the calculation is as follows:

1 x 2,000 x -0.000028 = -0.056 = -$0.06* rounded.

Note: Ava Trade platforms display overnight interest (swaps) in annualised terms.

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INDIVIDUAL EQUITIES

Individual Equities Spread Calculation

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 compensated through the Bid-Ask spread, except when otherwise stated.

AvaTrade does not charge commissions on any trade.

Individual Equities Margin Calculation

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.

AVA may double margin requirements on specific stocks prior to earnings release. This is a preventative measure to avoid clients with large exposures in the said equity, falling into negative equity.

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*

Individual Equities Buy/Sell Overnight Interest Calculation

The Individual Equities Trading Conditions display the Over-Night Interest Rates Charged/Paid on a daily 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 End of Day Market Price x Daily Overnight Interest = Daily 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 an End of Day Market Price of $140 and a Daily Overnight Interest Buy (or Sell) rate of -0.0083%, and subject to a charge for 1 day, the calculation is as follows:

1 x 140 x -0.000083 = -0.012 = -$0.01* rounded.

Note: Ava Trade platforms display overnight interest (swaps) in annualised terms.

Individual Equities Corporate Actions & Calculation

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 100% of the Gross dividend.

(Amount of Shares x Gross Dividend) x 1.00

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 1.00 = 1.00 x 1.00 = +$1.00

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.

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

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BONDS

Bonds Spread Calculation

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 compensated through the Bid-Ask spread, except when otherwise stated.

AvaTrade does not charge commissions on any trade.

Bonds Margin Calculation

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*

Bonds Buy/Sell Overnight Interest Calculation

The Bonds Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a daily 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 End of Day Market Price x Daily Overnight Interest = Daily Overnight Interest Charged/Paid*

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

Example

For a 10 Bond 5 Year US T-NOTES Trade, with an End of Day Market Price of $150 and a Daily Overnight Interest Buy (or Sell) rate of -0.0028%, and subject to a charge for 1 day, the calculation is as follows:

10 x 150 x -0.000028 = -0.042 = -$0.04* rounded.

Note: Ava Trade platforms display overnight interest (swaps) in annualised terms.

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EXCHANGE TRADED FUNDS

Exchange Traded Funds Spread Calculation

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 compensated through the Bid-Ask spread, except when otherwise stated.

AvaTrade does not charge commissions on any trade.

Exchange Traded Funds Margin Calculation

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*

Exchange Traded Funds Buy/sell Overnight Interest Calculation

The Exchange Traded Funds Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a daily 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 End of Day Market Price x Daily Overnight Interest = Daily 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 an End of Day Market Price of $24.00 and a Daily Overnight Interest Buy (or Sell) rate of -0.0083%, and subject to a charge for 1 day, the calculation is as follows:

10 x 24.00 x -0.000083 = -0.019 = -$0.02* rounded.

Note: Ava Trade platforms display overnight interest (swaps) in annualised terms.

Exchange Traded Funds Corporate Actions & Calculations

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.

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AVA OPTIONS

Fx Spread Calculation

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 compensated through the Bid-Ask spread, except when otherwise stated. AvaTrade does not charge commissions on any trade.

Option Premium Calculation

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 compensated through the Bid-Ask spread, except when otherwise stated.

AvaTrade does not charge commissions on any trade.

Avaoptions Margin Calculation

The AvaOptions platform calculates required margin using one of two methods, depending on the underlying instrument.

For equity index options, margin uses a simplified exchange margin model. Margin = Margin Rate x Index price x (Total Spot Quantity + Total Short Options Quantity) + Total Option Premium received.

Example 1: Account has sold 30 US500CASH Puts at $6.00 for total premium $180 at a margin rate of 1.5%, with the index trading at 4100. Margin = 1.5% x (30 x 4100) + 180 = $2025.
Example 2: Account has sold 30 US500CASH Calls at $7.50, and also has a long position in 10 US500CASH Spot, Margin = 1.5% x (40 x 4100) + 225 = $2685.

Note that the margin rate for Spot can be different than the margin rate for Options. If an account combines Spot and Options positions in the same underlying, the Spot margin rate is used for both.

For trades in other instruments such as FX and Gold and Silver, margin is set according to the riskiness of the portfolio, applying standardized stresses to each currency pair using a system known as SPAN, for Standardized Portfolio Analysis.

We divide customer portfolios by currency pair, and evaluate portfolio values for each currency pair under 16 scenarios:

	Underlying Price	Volatility	% of Risk
1	Down Margin%	Up	100%
2	Down Margin%	Down	100%
3	Down 2/3 Margin%	Up	100%
4	Down 2/3 Margin%	Down	100%
5	Down 1/3 Margin%	Up	100%
6	Down 1/3 Margin%	Down	100%
7	Unchanged	Up	100%
8	Unchanged	Down	100%
9	Up 1/3 Margin%	Up	100%
10	Up 1/3 Margin%	Down	100%
11	Up 2/3 Margin%	Up	100%
12	Up 2/3 Margin%	Down	100%
13	Up Margin%	Up	100%
14	Up Margin%	Down	100%
15	Up 2 * Margin%	Unchanged	35%
16	Down 2 * Margin%	Unchanged	35%

Scenarios 1-14 evaluate the portfolio with volatilities higher and lower at seven spot levels. For a currency pair with a spot margin requirement of 1%, the spot levels are -1%, -.67%, -.33%, Unchanged, +.33%, +67%, and +1%.

Scenarios 15 and 16 move spot up and down by double the margin requirement (e.g. 2%), and take 35% of the observed portfolio change as risk. These scenarios are designed to capture risk of options that are further out of the money, without impacting margin for spot positions.

The greatest portfolio loss observed in these 16 scenarios is taken as margin for that currency pair. The sum of margin for each currency pair is the total Required Margin.

One may note that for a portfolio of spot positions, the margin under SPAN is equal to the Margin% times the total spot position, identical to most spot trading platforms, and neither implied volatilities nor scenarios 15 and 16 have any impact.

Each option’s implied volatility is moved up and down according to the following formula:

Vol Shift = Volatility Factor X Max( Implied Vol, Minimum Vol)

Implied Vol = the current mid-market implied volatility of the option

Minimum Vol = 10%

Table of Volatility Factors:

Days to Expiration	G10	EM
7	31%	41%
14	22%	29%
30	15%	20%
90	9%	12%

For example, a 2 week G10 option implied volatility is shifted +/- 22%, with a minimum move of 2.2 vol. For a 6 month option, vol is bumped +/- 9%, with minimum move of 0.9 vol.

The Volatility Factor normalizes volatility of volatility, as a 1 week option’s implied volatility can move more drastically than can that of a 1 year option. Its math is as follows:

Volatility Factor = SQRT( 30/ADTE ) * Reserve ADTE = Days to Expiration, with minimum of 7 and maximum of 90. Reserve = 15% for G10 currency pairs, and 20% for pairs including one or more emerging market currencies.

Fx Buy/sell Overnight Interest Calculation

The AVAOPTIONS Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a daily 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 Daily Overnight Interest amount using the published rates:

Trade Amount x Daily Overnight Interest = Daily Overnight Interest Charged/Paid*

*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 Daily Overnight Interest Buy (or Sell) rate of -0.0053% and subject to a charge for 1 day, the calculation is as follows:

10,000 x -0.000053 = -€0.53

Note: Ava Trade platforms display overnight interest (swaps) in annualised terms.

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INACTIVITY AND ADMINISTRATION FEES

Inactivity Fee

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: $50
EUR Account: €50
GBP Account: £50

Applicable fees subject to change periodically.

Administration fee

Customer acknowledges that the Customer’s trading account may be subject to an annual administration fee unless prohibited by law. After 12 consecutive months of non-use (“Annual Inactivity Period”), an administration 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: This is to offset the cost incurred in making the service available, even though it may not be used.

Administration Fee:

USD Account: $100
EUR Account: €100
GBP Account: £100

Applicable fees subject to change periodically.

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