CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

What is XVA?


It stands for X-Value Adjustment, and is used in financial valuation models. It’s a generic term referring to a number of different valuation adjustments in relation to derivatives, such as options and futures, held by investment banks.

Where have you heard about XVA?

Banks place a lot of importance on real-time analytics that are capable of modelling trade prices over time to determine how the investment will behave and how profitable it's likely to be in the future.

What you need to know about XVA.

XVA is an extension of the better-known credit valuation adjustment (CVA), which is used to hedge against a bank’s aggregated counterparty risk. XVA covers all derivatives valuation adjustments, including debit valuation adjustment (DVA) and fund valuation adjustment (FVA).

These pricing adjustments have grown in number and significance since the 2008 financial crisis. Because the values of CVA, DVA and FVA overlap, some banks are now grouping them together, giving pricing and hedging responsibility to a single desk within their organisation instead of having separate operations for each.

Related Terms

Latest video

Latest Articles

View all articles

Still looking for a broker you can trust?

Join the 610,000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading