|Margin Rates||From 25%|
|Financing||0.08219% per night|
|Hours||22:00 GMT Sunday - 22:00 GMT Friday|
|Bitcoin ($) DFT||10p per point|
|Bitcoin ($) CFD||1 CFD per $1 move|
|Bitcoin ($) Mini (per 10) CFD||1 CFD per $10 move|
* May change due to market conditions.
Trade on Bitcoin price movement
Go long or short
Trade on Bitcoin volatility
Tax efficient trading
Trade on leverage
Why trade Bitcoin?
Diversify your portfolio
Risk management tools
Short the markets
as well as rising prices
How to Trade Bitcoin
Chose a product type
You can trade Bitcoin at City Index as a Spread Bet or CFD.
Decide when to Buy or Sell
When you trade Bitcoin at City Index you do not own any underlying Bitcoin assets. You are speculating on the price movements between Bitcoin and the USD.
Manage you risk exposure
Add a Stop Loss Order to protect your position should the market suddenly move against you.
Monitor and close your trade
Once you have placed your trade your profit and loss will update in real time and you can close your trade by clicking "Close trade".
Why City Index?
Learn to Trade with Bitcoin
Trade wherever you are, on our fast, reliable platforms
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Bitcoin Mini CFD
With our Bitcoin Mini CFD you can trade positions that represent a tenth of a full Bitcoin, reducing the margin amount required to trade. This means:
- As your position value is 10 times smaller, your required margin is 10 times less.
- You trade every $10 price move rather than every $1 price move, reducing your exposure to price volatility.
For example you can trade Bitcoin CFDs as shown below:Bitcoin ($) Mini (per 10) CFD
|Example Buy Price||Mini CFD Trade Size||Value of Position||Margin Requirement (25%)|
|$11,100||1 CFD per $10 move||$1,100||$277.50|
|Example Buy Price||Standard CFD Trade Size||Value of Position||Margin Requirement (25%)|
|$11,100||1 CFD per $1 move||$11,100||$2,775.00|
What is Bitcoin?
Bitcoin is a decentralised cryptocurrency or peer-to-peer digital payment system which is used as a method of investment as well as transaction for other currencies, services or products.
Initially launched in 2009 by an anonymous internet user or group known only as “Satoshi Nakamoto,” the virtual currency has grown rapidly since its inception.
The value of early Bitcoin transactions were negotiated by miners on the bitcointalk forums with each Bitcoin at the time worth an estimated $0.06.
As Bitcoin has become more widely used and as greater quantities of Bitcoin have been mined the price has risen sharply since early 2013.
Buying Bitcoin vs Bitcoin trading
There are two main ways to invest in Bitcoin online; you can open a virtual wallet and buy Bitcoin through the blockchain at its current market value or you can trade on price movements of Bitcoin by opening a Spread betting or CFD Trading account.
When you buy Bitcoin on an exchange, it is similar to investing in any other physical asset and you will own the underlying instrument which you can then sell at a later date, should the value of the asset rise.
When you trade Bitcoin as a Spread Bet or CFD, you are speculating on the price movement of the underlying Bitcoin market. The price of Bitcoin will be quoted in established currencies, primarily USD, and you will not own the underlying instrument. Additionally you will be trading on leverage which allows you a greater market exposure without tying up large amounts of capital.
- When you trade Bitcoin you can go long as well as short
- Spread Betting and CFD Trading are a tax efficient form of investment. Spread Betting and CFD Trading are exempt from UK Stamp Duty*. Spread betting is also exempt from UK Capital Gains Tax
- You won’t own the underlying asset so don’t need to set up a virtual wallet
- When you Spread Bet or trade CFDs on Bitcoin you are trading on leverage, this means you have a larger exposure to the market with less upfront capital. Remember leverage can magnify profits as well as losses.
- When you buy Bitcoin you own the underlying asset and will purchase your chosen amount of Bitcoin at full market value
- You will pay capital gains tax on any profits
- You will purchase Bitcoin on an exchange, this will require you to open a virtual wallet to store your Bitcoin
- It can be expensive to withdraw or fund your virtual wallet, some exchanges charge fees for doing so
- Setting up an account and arranging purchase of Bitcoin can be time consuming and overly complicated
What is the City Index policy on Bitcoin forking?
In the event that the current bitcoin splits into two, new bitcoins are created, this is known as a hard fork. We will generally follow the bitcoin that has the majority consensus of cryptocurrency users and will therefore use this as the basis for our prices. In addition we will also consider the approach adopted by the exchanges we deal with, which will help determine the action we take.
We reserve the right to determine which cryptocurrency unit has the majority consensus behind them.
As the hard fork results in a second cryptocurrency, we reserve the right to create an equivalent position on client accounts to reflect this. However, this action is taken at our absolute discretion, and we have no obligation to do so.
If the second cryptocurrency is tradeable on major exchanges, which may or may not include the exchanges we deal with, we may choose to represent that value, but have no obligation to do so. We may do this by making the product available to close based on the valuation, or by booking a cash adjustment on client accounts.
If, within a reasonable timeframe, the second cryptocurrency does not become tradeable, then we may void positions that had previously been created at no value on client accounts.
Over periods of substantial price volatility around fork events, and we may take any action as we consider necessary in accordance with our terms and conditions including suspending trading throughout if we deem not to have reliable prices from the underlying market.