In November 2013, Forex Magnates reported that the London Stock Exchange’s AIM listed CFD broker, Plus500 had to change trading conditions on its Bitcoin offering after the digital currency’s great jump in value, canceling short trades, setting expiry dates and limiting leverage.
But now it is confirmed by the company that those stiff trading conditions have recently become much more flexible.
Speaking with Forex Magnates about the current situation with Bitcoin and Litecoin CFDs on the broker’s platform, Elad Even-Chen, the VP of Business Development at Plus500, said that Bitcoins are now traded with leverage of 1:10 and expire only monthly. Litecoins are also offered with a leverage of 1:10 but expire on a daily basis.
The Participants in Forex Trading and their Role in the MarketGo to article >>
Plus500 responded to demands from its clients for higher leverage on Bitcoins, and its risk approach allowed the broker to make these changes to the trading conditions. Asked by Forex Magnates what the plans for the next level of leverage on Bitcoin are and whether 200:1 possible is in a year from now, Even-Chen said: “We believe 1:10 leverage is the highest we can go with the current volatility of Bitcoins. If volatility changes so will the leverage.”
All the broker was willing to share publicly on how are they handling the very high comparative volatility of Bitcoin at this point is that they “have internal systems for this that monitor it.”
As Plus500 was the first broker to offer leveraged trading on Bitcoin and later Litecoin, Forex Magnates inquired if the firm is planning on adding more digital currencies CFDs in the future like DogeCoin for example. The company’s answer was positive, Even-Chen responded: “Yes, as soon as market liquidity enables it. As always, we try and offer our customers the best possible range of indices.”
To learn more about “the world’s first crowdsourced currency,” Dogecoin, click here.