Admiral Markets Allows Short Selling for Cryptocurrency CFDs

London-based brokerage firm Admiral Markets UK today enhanced its cryptocurrency CFDs offering by enabling the short selling of this type of derivative instrument on both Bitcoin and Ether products.

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The company now offers its clients to easily access the price movement of the world's two most popular Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, whilst limiting the potential losses associated with directing their investment funds in volatile market conditions.

Short selling means selling cryptocurrency that you don’t own when you expect its price to fall in the future. When it does, you buy back the digital currency at the lower price and make a profit. It is the opposite of buying the instrument (going long), when you profit when the price goes up and lose when it goes down.

Potential CFD investors, however, need to be aware of the dangers involved with the extremely risky financial product.

In its statement, Admiral Markets was keen to spell out to investors the risks as well as the rewards of these complex products. Concerning the trading costs, the broker warned that short selling on margin “involves the interest Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term on the funds we borrow from the cryptocurrency exchange," so the resulting position financing rates will be as follows:

Admiral Markets also said that due to the extreme volatility of the cryptocurrency markets, the borrow rates across the exchanges are often considerably high.