FXCM, an international provider of online foreign exchange (forex), contracts-for-difference (CFD), and cryptocurrency trading, is expanding its crypto offering by introducing cryptocurrency baskets for its retail clients, the company announced this Monday.
Baskets allow investors to trade multiple financial instruments at the same time, without needing to manage the instruments separately. FXCM’s cryptocurrency basket has been named CryptoMajor and is made up of five virtual currencies – Bitcoin, Ripple, Litecoin, Bitcoin Cash, and Ether.
Unlike other cryptocurrency baskets on the market, the CryptoMajor basket gives equal weighting to each coin in the basket. This means the product is not overly exposed to just one cryptocurrency.
Commenting on the launch, Brendan Callan, the CEO of FXCM, said: “Trading a basket of cryptocurrencies means our users are freed from the hassle of constantly monitoring the markets.”
“CryptoMajor therefore streamlines the trading process and protects our customers from unanticipated and adverse market movements. It is a great opportunity for our customers who are looking to move into Crypto trading but don’t want to risk too much overexposure.”
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According to the statement, the CryptoMajor basket can be traded via all of the trading provider’s flagship platforms, in addition to MetaTrader 4, NinjaTrader, and also via API.
FXCM continues to expand crypto and FX offering
FXCM continues to expand its investment offering – both into FX and cryptocurrencies. As Finance Magnates reported, in May, the firm added CFDs on two new cryptocurrencies – Bitcoin Cash (BCH) and Ripple (XRP).
Furthermore, the crypto basket announced today, is not the first product of its kind to be offered by the broker. Back in July, the FX and CFD trading provider launched forex baskets for its retail clients.
FXCM is offering three different baskets – the Dollar Index Basket, the Yen Index Basket, and the Emerging Markets Index Basket. As the names suggest, the US dollar, Japanese yen, and for the emerging markets basket, the US dollar also, have been used as the base currency for each basket.
A foreign exchange or forex basket is a mix of several currencies that all begin with the same equivalent value. Traders can then buy or sell a base currency against a mix of multiple currencies that are included in the basket. The value of the basket is dependent upon how the base currency performs against the other currencies in the basket since its inception.