Without going into too much detail behind the underlying technology, let’s just have a look at what a cryptocurrency is and how it works.
Simply put, a cryptocurrency is digital money, and is often seen as an alternative to what is known as fiat currency.
A defining feature of a cryptocurrency is its decentralized nature; it is not issued or regulated by any central authority, making it immune to government interference or manipulation.
Unlike euros or dollars, which have an unlimited supply, the supply of virtual currencies is tightly controlled by the underlying algorithm. For this reason, a cryptocurrency can be compared to valuable commodities like gold.
If you wish to invest in CFDs on cryptocurrencies, you should be aware of the following
Cryptocurrencies are traded on non-regulated decentralized digital exchanges. The pricing of crypto currency CFDs is derived from these exchanges, which may mean the following:
Crypto currency CFDs are not suitable and/or appropriate for all clients. Any person who intends to trade or invest in crypto currency CFDs should have detailed and updated knowledge of the block chain industry.
|Bitcoin||#Bitcoin||1 Bitcoin||12000||0.1%||-10% (0%*)||-10% (0%*)||1:2|
|Ethereum||#Ethereum||1 Ethereum||200||0.1%||-10% (0%*)||-10% (0%*)||1:2|
|Litecoin||#Litecoin||100 Litecoin||70||0.1%||-10% (0%*)||-10% (0%*)||1:2|
|Ripple||#Ripple||10000 Ripple||50||0.1%||-10% (0%*)||-10% (0%*)||1:2|
|Bitcoin Cash||BCHUSD||1 Bitcoin Cash||200||0.1%||-10% (0%*)||-10% (0%*)||1:2|
* Swap rates are calculated based on the relevant interbank rate. Holding long positions incurs a charge of the relevant interbank rate plus a mark-up. Meanwhile, holding short positions creates a credit of the relevant interbank rate minus a mark-up. The operation takes place at 00:00 (GMT+2 time zone, please note that DST may apply) and can take several minutes. From Wednesday to Thursday the swap for three days is charged.
The margin requirement for CFDs is calculated as follows: Lots * Contract Size * Opening Price * Margin Percentage and is not based on your trading account leverage.
The 50% of margin is required for hedged CFD positions.