Bitcoin Spread Betting

Bitcoin Spread Betting | Bitcoin Trading Without A Wallet

Broker
(+more info)
Bitcoin
Bitcoin Futures
Trade Now >>
City Index

X
ETX Capital

X
GKFX

X
Spread Co
X

ThinkMarkets

X

Bitcoin Spread Betting

Bitcoins can be traded. This can be done on exchanges, where bitcoins are bought and sold. However it is also possible to trade bitcoins at spread betting brokers. When bitcoin is traded on exchanges it is traded as an asset, which when bought, is owned by the trader and stored (for example in a wallet). However in spread betting, the trader does not own the asset. Rather the asset is an underlying upon which contracts are based that are bought and sold. These contracts are based on the value of the underlying. The exchanges still have a role, as typically the spread betting brokers base the value on exchange prices.

So the main difference is that the trader when spread betting does not own bitcoin. This means though, that no wallet is required, as there is no asset to be stored. It also means that the trader can use leverage. This means that the trader can control a larger amount of an asset than if they were buying and selling the asset. However bitcoins are subject to very strong volatility, as their price moves up and down. Leverage increases exposure to volatile price movements, that is increasing leverage increases risk.

The brokers, as well as having bitcoin, may have other cryptocurrencies to spread bet and will have a range of other markets to trade, for example, Forex and Equities. In addition to spread betting, these brokers offer cryptocurrency CFD trading as well. All of these brokers are regulated by the FCA in the United Kingdom.

Search this site

Translate