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AvaTrade Options Trading: AvaOptions, Vanilla FX Options and SPAN Margin
AvaTrade offers vanilla calls and puts on more than 40 currency pairs plus gold and silver through its AvaOptions platform, with expiries from overnight to one year. Options are cash-settled and margined with SPAN. Here is how AvaTrade options work, what they cost and who they suit.
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AvaTrade is one of few retail brokers offering vanilla FX options alongside CFDs. Through its AvaOptions platform, available on desktop, web and mobile, you can buy and sell European-style calls and puts on more than 40 currency pairs, gold and silver, and trade spot FX in the same account. Its Help Center says the options are cash-settled: in-the-money options are closed automatically at intrinsic value when they expire.
Options let you shape your risk in a way spot trading can't, but they bring their own terms, from premiums to implied volatility.
| Product | European-style vanilla calls and puts |
|---|---|
| Underlying | 40+ currency pairs, gold and silver |
| Expiries | Overnight to 1 year, any strike |
| Settlement | Cash, at intrinsic value |
| Expiry time | 10:00 New York time |
| Margin | SPAN portfolio method |
Calls and puts in brief
A call gives the buyer the right, not the obligation, to the underlying position if price rises above the strike; a put does the same if price falls. The buyer pays a premium, which is the most they can lose. Sellers receive the premium and take on the obligation, which can carry larger risk.
| Position | View | Maximum loss | Maximum gain |
|---|---|---|---|
| Buy call | Price rises | Premium paid | Unlimited in principle |
| Buy put | Price falls | Premium paid | Large, until price reaches zero |
| Sell call | Price stays below strike | Unlimited in principle | Premium received |
| Sell put | Price stays above strike | Large | Premium received |
How AvaTrade options differ from binary options
AvaTrade's Help Center stresses this. Binary options pay a fixed amount and usually expire within the day. Its vanilla options run from one day to one year, and their value grows without limit as the trade moves your way. For a buyer, the most you can lose is the premium in both cases.
Expiry and trading times
AvaTrade's options expire at 10:00 New York time. The Help Center describes monthly expiries on the third Thursday with up to twelve per pair, while the AvaOptions platform offers expirations on business days from overnight up to a year. You can trade whenever the underlying FX market is open, and open new positions up to a day before expiry. On expiry day, positions are closed, and extending them may need direct negotiation with the dealing room.
Margin: the SPAN method
AvaOptions uses SPAN (Standardised Portfolio Analysis) to set margin from your portfolio's risk. AvaTrade tests each currency pair in your portfolio against 16 scenarios: 14 combine seven spot levels with different volatility assumptions, and two move spot by twice the margin requirement and weight the result. The worst loss across the scenarios becomes that pair's margin.
Holding both spot and options on the same pair applies the lower leverage, or higher margin rate, to all positions in that pair.
Strategies on AvaOptions
The platform offers 13 ready-made strategies, including calls, puts, call and put spreads, ratios, straddles, strangles, butterflies, risk reversals and seagulls. Spreads are reduced automatically for combinations such as spreads and risk reversals. Trade sizes range from 10,000 to 10 million.
Tools for managing risk
- Portfolio risk summaries, including Delta, Vega and Theta.
- A live profit and loss chart for each position.
- Implied and realised volatility curves.
- Stop and limit orders on options, triggered by premium levels.
- Bar charts of net exposure by pair and by single currency.
Stop out on options accounts
If your Net Liquidation Value falls below 50% of required margin, AvaTrade closes all positions in the options account. Selling options can tie up significant margin, so keep a buffer. Our AvaTrade stop out guide covers margin generally.
Demo and getting started
- Open an AvaOptions demo, which runs for three months.
- Practise buying calls and puts with small sizes and short expiries.
- Learn how premiums change with volatility and time.
- When ready, add a real AvaOptions account from your account area.
AvaOptions demos can be extended by emailing [email protected] in the second month. See our AvaTrade demo guide.
Who AvaOptions suits
Traders who want defined risk on a currency view, hedgers protecting spot positions, and experienced traders who understand volatility will get the most from it. Beginners should start by buying options, where the premium caps the loss, rather than selling them.
A worked example
The figures below are hypothetical; AvaOptions prices premiums live. Suppose you buy a one-month EUR/USD call with a premium of $300.
| EUR/USD at expiry | Option value | Net result |
|---|---|---|
| Below the strike | Expires worthless | -$300 (the premium) |
| Just above the strike | Small intrinsic value | Partial loss |
| Well above the strike | Large intrinsic value | Profit, rising with price |
The premium is the most a buyer can lose. You can also sell the option before expiry to lock in gains or cut losses.
Options, spot trades and AvaProtect compared
| Buying an option | Spot trade with stop | Spot trade with AvaProtect | |
|---|---|---|---|
| Maximum loss | Premium | Distance to stop (can slip) | Premium during cover |
| Time limit | Until expiry | None | Protection period |
| Platform | AvaOptions | Any | AvaTrade app, WebTrader |
Our AvaProtect guide explains the protection product in full.
The risks of selling options
Selling an option earns the premium upfront, which appeals to traders looking for income. The risk runs the other way: if the market moves sharply through your strike, losses can be far larger than the premium received. Because AvaOptions margin is set by SPAN stress scenarios, a jump in volatility can raise your margin requirement just as the position moves against you, and if Net Liquidation Value falls below 50% of required margin, all positions are closed. Spreads such as call spreads cap that risk and are a sensible way to start selling.
Buying a call or put on AvaOptions gives you a known maximum loss without a stop loss. Start there, and only move to selling options once you understand how quickly SPAN margin can grow when volatility jumps.
Elena expected EUR/USD to rise after an ECB meeting but feared a sharp drop first. Instead of a spot trade, she bought a one-month call on AvaOptions. The euro dipped, then rallied; her maximum risk had been the premium throughout, and she sold the call for a profit before expiry.
Frequently asked
Does AvaTrade offer options trading?
Yes. AvaOptions offers European-style vanilla calls and puts on more than 40 currency pairs, gold and silver.
Are AvaTrade options binary options?
No. They are vanilla options with expiries from one day to one year, and their value isn't capped at a fixed payout.
When do AvaTrade options expire?
At 10:00 New York time. Expiries range from overnight to one year.
How are AvaTrade options settled?
In cash. In-the-money options are closed automatically at intrinsic value on expiry.
How is margin calculated on AvaOptions?
With SPAN, which tests your portfolio across 16 scenarios and uses the worst loss as the margin for each pair.
Is there an AvaOptions demo?
Yes, for three months, extendable by emailing [email protected] during the second month.
Can I trade gold options at AvaTrade?
Yes. AvaOptions offers vanilla calls and puts on gold and silver as well as currency pairs.
How long can an AvaTrade option run?
Expiries range from overnight up to one year from the trade date.
When can I trade AvaTrade options?
Whenever the underlying FX market is open. New positions can be opened up to one day before expiry.
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