Spread Betting Provider InterTrader Adds Five Cryptocurrencies To CFD Offering

Announcements | May 18, 2018 By:

Online trading provider InterTrader has added five cryptocurrencies to its contracts-for-difference (CFD) trading.

InterTrader Limited is a “market-neutral” broker that offers spread betting and CFDs across multiple liquidity providers on its web-based multi-asset platform, as well as MT4 platform for private and institutional traders. It is authorized and regulated by the Gibraltar Financial Services Commission and registered with the Financial Conduct Authority (FCA) in the UK.

InterTrader’s customers can now trade bitcoin, ethereum, Bitcoin Cash, Litecoin and Ripple against the US dollar as a CFD. Clients can go long or short of the value of any of these cryptocurrencies without having to make a physical purchase or use a digital wallet.

“We aim to offer our clients a safe and straightforward way to trade cryptocurrencies,” said Shai Heffetz, managing director of InterTrader. “These are some of today’s most exciting and eventful markets. Our clients can now gain exposure to changes in value of a wide range of cryptos, with the added benefit of our 100% market-neutral execution.”

CFDs are complex financial instruments which allow investors to speculate on the price of an asset. CFDs are typically offered with leverage, which means investors only need to put down a portion of the investment’s total value. However, leverage also multiplies the impact of price changes on both profits and losses. This means investors can lose money very rapidly.

In March of this year, the European Securities and Markets Authority (ESMA) imposed restrictions on the leverage offered for CFDs. Under the new measures, the leverage offered on cryptocurrency CFDs will be limited to no more than 2:1. The new measures also mandates that traders provide an initial margin of “50% of the notional value of the CFD when the underlying asset is a cryptocurrency” – more than twice the initial margin required of any other CFD.