Many Bitcoin exchanges also have the Trading Bitcoin features. Also, we list CFD-trading companies and Bitcoin bots that offer the possibility to trade with Bitcoin and other cryptocurrencies.
Bitcoin CFD Trading
Bitcoin CFD trading is possible with Plus500 and IG. CFD, contract for difference, is the difference where a trade is entered and exited. CFD is a tradable instrument the mirrors and follows the price of the underlying asset. The actual asset is never owned.
It is common to use leverage trading. This means you take a position more worth than your actual investment. To do this, traders borrow money temporary. All this is handled automatic by the trading company. The trader pays daily interest on the borrowed money. With Bitfinex this money can come from other traders.
Leverage trading risks
This is high risk since you can take a position worth $100.000 for $10.000. This also means you can loose more than you have invested. All companies have very well functioned safety functions for this. The companies also take a risk if you lose more than you have on your account.
CFD trading, contract for difference trading, is a contract between two parties. CFD trading consist of a buyer and a seller. They agree that the seller will pay the buyer the difference between the current value of an asset and its value at contract time. If the difference is negative the buyer pays instead. CFDs are financial derivatives that allow traders to speculate in prices moving up (long positions) and prices moving down (short positions).