High Leverage Bitcoin CFD Trading

High Leverage Trading | Bitcoin CFD Trading | Platforms

Bitcoin CFD Trading Table Showing Maximum Leverage
Online BrokerMaximum LeverageBitcoin CFD Trading PlatformsMinimum Margin
50:1MT5, MT5, R Trader2%

Bitcoin CFD Trading - High Leverage Trading

When trading a Bitcoin CFD, the trader does not own any Bitcoin. As they do not own Bitcoin, they can trade without needing a wallet and can go long or short and use leverage. Trading with a CFD broker allows the trader to make use of the online trading platforms including charting tools available to trade other CFDs. These can include platforms such as MT4 and MT5 which support both non-automated and automated Bitcoin CFD trading.

Bitcoin CFDs are based on the value of Bitcoin as it is traded on exchanges. Bitcoin is extremely volatile. Increasing leverage increases exposure to volatility, thus increasing leverage greatly increases risk. Increased leverage allows the trader to trade Bitcoin with a lower position size (which is a factor given the value of Bitcoin), but it is also possible to trade with smaller trade sizes and reduce leverage this way.

Bitcoin itself is a payment network based on the Internet which allows payments to be processed from wallet to wallet. The payment processing system uses a protocol called the blockchain which is implemented as a data structure consisting of linked blocks of processed payment and other data. Miners compete to create a new block to be validated by the Bitcoin network and added to the blockchain, which is secured using cryptography. This list of processed data blocks creates a secure public record of all transactions in the cryptocurrency Bitcoin.

Bitcoin is traded on cryptocurrency exchanges under the ticker symbol BTC. This creates a reference value for a Bitcoin CFD, thus allowing the trader to trade Bitcoin without having to own it, given that trading consists of speculating on the movement in value of a market. The trader can go long if they believe that Bitcoin will increase in value or can go short if they believe that Bitcoin will decrease in value. To have a basis for such a belief, the trader can study fundamental data about Bitcoin, namely all the factors which may influence its value on exchanges causing alterations in its price, as well as technical analysis performed on the online trading platforms using charting tools.

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