Retail FX Broker OctaFX has joined the growing list of FX brokers launching cryptocurrency trading on their platforms as digital currencies begin to gain traction among traders and investors.
The broker has announced that its clients will be able to trade Bitcoin, Ethereum, Litecoin and Ripple on its platform. Originally, only Bitcoin and Ethereum trading were allowed at FX brokers, but now they have acknowledged the diversity of the cryptomarket.
OctaFX provides a leverage of 1:5 for margin trading, similar to most other brokers. These instruments will be CFDs, which mean that there is no delivery of cryptocurrency to client accounts.
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The Bitcoin and Ethereum markets have witnessed a lot of volatility over the last several weeks. They were in a strong uptrend at one point of time but there has been in a strong downtrend ever since China announced its ban on ICOs and ordered Bitcoin exchange operators to shut down their services.
This has led to two way movement in the prices, thus providing many trading opportunities for those who can digest the risk that comes along with the volatility.
The cryptocurrencies are available as BTC/USD, ETH/USD, LTC/USD and XPR/USD on the OctaFX platform. The broker hopes to cash in on the volume in these markets. While they have taken a beating of late. they are likely to improve as the market stabilizes in the short to medium term.