CRYPTOCURRENCY TRADING EXAMPLES
If the selling price is $11,500 and the buying price is $11,550 for one bitcoin, and you believe that bitcoin’s price will fall against the dollar, you may decide to sell 10 bitcoin contracts at $11,500. Each of our CFD contracts is equivalent to transacting in one bitcoin.
Bitcoin’s price falls and our new price is $11,300/$11,350. You decide to take your profit by buying at $11,350.
$11,500 – $11,350 = $150 move or 150 points.
Your gross profit is 10 contracts x $150 = $1,500.
Bitcoin’s price rises and our new price is $11,650/$11,700. You decide to close your position by buying at $11,700 to limit your losses.
$11,700 – $11,500 = $200 move or 200 points.
Your gross loss is 10 contracts x $200 = $2,000.
Cryptocurrencies, including, without limitation, bitcoin and ethereum, are subject to a very high degree of uncertainty and price volatility. Investors in cryptocurrency CFDs are exposed to a number of additional risks not present in more traditional investments. These risks are set out in Cryptocurrency CFDs – Additional Risk Warnings & Conditions . This is not an exhaustive list.