More Bitcoin CFDs Hit the Market as eToro and UFXMarkets Launch Offerings

Last month Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates published that eToro had launched a public beta version of bitcoin trading. Based on its ‘shares’ offering, the broker has officially launched the product today with minimum trade sizes of $10. However, unlike eToro’s equity stock offering which shares similar traits to mutual funds, with a once and day acquisition of shares, bitcoin orders will be executed four times a day.

The public launch from eToro occurs as another broker, UFXMarkets has also announced that it is beginning to offer bitcoin trading to its users. At UFX Markets, the CFD is being provided with what is considered pretty flexible trading conditions as 10:1 leverage is being provided. In its initial marketing, the broker is focusing on the potential trading benefits of bitcoins due to its Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term, Chris Judd, Chief Analyst at UFXMarkets stated in the company’s public release that “Forex traders don’t need to care how economies are doing or whether something new will catch on. Volatility creates great opportunities for Traders. That means that no matter what you think about the future of bitcoin, it’s an ideal trading asset.”

Contrasting to UFXMarkets, in publicly launching bitcoin trading, eToro has decided to focus on the disruptive benefits of bitcoin as a peer to peer digital currency. This attitude is not surprising as the company’s CEO, Yoni Assia has been a vocal proponent of bitcoins in the past, with company also hosting industry related meetings. In their public release, Assia stated that “Both eToro and Bitcoin were born out of the social revolution. It’s therefore very apt for us to take the lead in making Bitcoin – essentially the world’s first crowdsourced currency – available to the masses. Through our social network, individuals can easily and conveniently invest in Bitcoin and take advantage of a new type of investment either with their own strategies or by harnessing the wisdom of our members.”

Overall, similar to the many brokers launching Chinese yuan related trading in 2013 to offer customers exposure to the world’s fastest growing economy, in 2014 focus is turning towards digital currency CFDs. As trader interests change, the launch of such instruments provides brokers potential tools to invigorate trading among dormant accounts as well as appeal to new customers. Currently, brokers have access to three technology providers that have created custom bitcoin feeds for retail trading platforms.