CMC Markets Adds Ripple (XRP), Bitcoin Cash (BCH) and Litecoin (LTC) to Crypto Trading Product
A contract for difference (CFD) is a way in which investors can trade. In particular, it is a type of derivative trading that permits investors to predict or assume the rising and falling prices of instruments such as shares, commodities, currencies and many others.
The new addition of cryptocurrencies on CMC Markets’ part has just expanded its CFD product as it already contained Bitcoin [BTC] and Ethereum [ETH]. What started off as an endeavor that targeted institutional clients only has been to open to retail clients as of June of this year – which means that they too can take a position on trading cryptocurrencies against USD.
According to the Group Commercial Director, David Fineberg, the launch to both institutional and retail clients has been an immense success to the point where said clients have, “expressed interest in extending their trading options beyond bitcoin and ethereum,” hence the reason for the additional three currencies to date.
Fineberg further explained the benefits of spread bets and CFDs by noting that they give investors the opportunity to test the waters without too much of the risks attached. In particular, he said:
“By trading with an established provider, funds can be deposited and withdrawn with ease, avoiding the risks of purchasing cryptocurrencies directly through an exchange […] We recommend clients understand the risks and conduct thorough research before trading.”
While benefits do exist, investors who take part in CFDs also need to realize that they are high-risk speculative products, which means that the nature of cryptos (i.e. volatile) and trading on margin could result in losses. Similarly, market volatility can have great influence on prices, which can be good and bad depending on the investor’s able to enter or exit on time.
To learn more on spread betting and CFDs, check out: https://www.cmcmarkets.com/en-ca/