We look at your net risk for each currency pair. This means long and short spot positions are combined with options in the same pair.
We then run scenario analysis to see what the potential worst case is for that currency pair under several scenarios and calculate reserves accordingly. This allows us to keep the required margin as low as possible.
The margin requirement is roughly equal to the net risk of an equivalent spot position, plus a measure of risk for options specific risk. You can always see the net required margin in the ticket window before executing any trade.
For more detailed information, please visit “AvaOptions Margin Calculation” section of the Trading Conditions page.