Multi-regulated online trading provider InterTrader has publicly revealed its newest product offering, having launched the contracts-for-difference (CFD) instrument on five popular cryptocurrencies.
The London-based spread better and trading provider became the latest FCA-regulated broker to add a cryptocurrency derivative product to its trading platform, giving its investors the added advantage of tax free profits when trading the digital asset.
InterTrader Limited is part of GVC Holdings PLC, a multinational sports betting and gaming group, which is listed on the London Stock Exchange. The group operates some of the leading brands in the gaming sector including bwin, sporting bet, partypoker and Foxy Bingo.
InterTrader’s customers can now trade Bitcoin, Ethereum, Bitcoin Cash, Litecoin and Ripple against the US dollar as a contract for difference (CFD). The new offering comes with access to margin and financing, as well as the ability to take both long and short positions. This often requires the brokerage to establish liquidity relationships with multiple exchanges to produce a volume-weighted average price for its instruments.
There has been rapid growth in UK-based CFDs and spread betting providers looking to cash in on the meteoric rise of cryptocurrency – including Admiral Markets, Plus500, Gain Capital’s City Index, and many others.
The firms likely turned to CFDs as a way of offering cryptocurrency trading due to the difficulty in hedging positions in the real markets which always makes this derivative type a prime alternative to many underlying assets.
Last year, the FCA cautioned investors over cryptocurrency CFDs, labelling them “extremely high-risk, speculative products”.
Shai Heffetz, managing director of InterTrader Ltd, commented: “We aim to offer our clients a safe and straightforward way to trade cryptocurrencies. Our clients can now gain exposure to changes in value of a wide range of cryptos, with the added benefit of our 100% market-neutral execution.”
Source: thebitcoinnews.com Read more here!