…but the markets got a little volatile and they suspended their market… and then it never re-opened.
As of 2017 IG Index and InterTrader are both offering Bitcoin spread betting markets. IG also offer spread bets on Ethereum.
Big Big Warning on Cryptocurrcies Spread Betting!Yes, that is “Big Big”.
These markets are incredibly volatile and spread betting is high risk. If you combine these two elements then are probably going to lose a lot of money quickly.
If in doubt, do not trade cryptocurrcy markets.
Put another way “do not trade cryptocurrcy markets”.
Live Bitcoin ChartBelow, a live BTC chart (BTC-e exchange):
Live Ethereum ChartBelow, a live Ethereum (ETHUSD) chart (based on the price on Coinbase):
Live Litecoin ChartBelow, a live LTC chart (BTC-e exchange):
What is a Bitcoin?Bitcoins are an online currency being labelled as ‘digital gold’ in some quarters due to its lack of government control.
Due to the difficulty and expense in being able to own Bitcoins, Spreadex launched a market allowing investors leveraged access to trade on the currency’s value.
The firm took its first Bitcoin trades in April 2013.
The market offered was based on the Bitcoin value according to the MtGox exchange.
MtGox ‘was’ where 80% of Bitcoin transactions took place at the time, it’s currently going through some rather well publisced bankruptsy proceedings (just to confirm, those proceedings have nothing to do with Spreadex).
Trading BitcoinsAt the time Andy MacKenzie of Spreadex said: “No-one is truly sure how important this form of currency could become.
“The currency’s appeal is that there are a fixed number of ‘coins’ – around 21m in total, that they are entirely unique, that there exists no central bank to control supply and that governments cannot apply tax.
“In essence, the currency is viewed as digital gold and as a potential inflation/devaluation hedge.”
Spreadex’s Bitcoin market was offered via phone trade only, with a minimum stake size of 50p and on a 50% margin. So a £1 bet on Bitcoin price movements at around the £90 level would require £45 to trade.
Spread Betting on BitcoinThe following market is no longer available with Spreadex but you can trade with IG and InterTrader.
Typical market facts, charges etc.
- You may not be able to set a stop on this market
- You are betting per pound movement (if you have a GBP based spread betting account)
- You can go long and short
- Daily rolling market only (the interest charged when rolling is 5% + 1Month LIBOR)
- Minimum stake size of 50p
- The spread is 2.5% either side of the underlying market
- 50% margin
Spread betting carries a high level of risk. You can lose more than your initial investment or stake. Spread betting may not be suitable for all investors. Only trade with money that you can afford to lose. Make sure you fully understand the risk involved. If necessary, seek independent financial advice.