CMC Markets expands crypto CFDs with tokens like the ripple

Difference contracts are suitable for hedging other securities account positions. This also makes it possible to compensate for losses in crypto currencies. Broker CMC Markets now offers further CFDs with crypto reference.

Successes since March lead to expansion of crypto offerings

In the spring of this year, the well-known broker in the field of trading in contracts for difference reacted to the interest of its international clientele by introducing CFDs on Bitcoin and its competitor Ethereum on its trading platform. As part of his continued expansion of the business model to include private investors with a smaller budget since summer 2018, the apparently considerable successes are now being followed by further coins. In addition to the Ripple, traders can now also use the Bitcoin Cash and the Litecoin in US dollars for their CFD activities. The expansion of crypto-CFDs applies immediately and without temporal lead.

Traders can reduce or prevent impending price losses

Customers of the broker can now “bet” on both falling and rising prices of the now five different tokens – typical for difference contracts in which physical values are not acquired but price fluctuations are speculated on – with immediate effect. For owners of the crypto currencies in question, this ideally means that they do not necessarily have to sell their reserves in the event of burglaries in order to immediately incur dramatic losses. Instead, traders can speculate on acute movements with the broker and take profits in the meantime. In this case, experts also speak of “hedging”. Large sums do not have to be invested to open positions on the various prices. Nevertheless, traders must be aware of the risk of loss.

CFD industry increasingly opening up to digital currencies

For company boss David Fineberg, the addition to the selection is the logical consequence of customer approval in recent months. A recommendation should not be the reference to the new possibilities with the broker. On the contrary, this example once again clearly shows that crypto currencies are also gradually arriving in other areas of the financial market. CFD traders no longer have to deposit money into accounts at crypto exchanges in order to participate in price developments without real purchases. Customers of the provider can now trade five of the currently most important currencies of the crypto market.