Build your Ethereum trading strategy with City Index.
- Go long or short on Ethereum
- Take advantage of Ethereum volatility without owning it
- Trade Ethereum from 50p a point
|Market‡||Spread†||Margin Rates*||Overnight Finance (Long)||Overnight Finance (Short)|
|Ethereum($) DFT||From 1.2||From 50%||0.0411% (pay)||0.0136% (receive)|
|Ethereum($) CFD||From 1.2||From 50%||0.0411% (pay)||0.0136% (receive)|
† May change due to market conditions.
* for Retail clients. Professional Trader rates here
‡ Trading hours on cryptocurrencies are 22:00 Sun - 22:00 Fri (BST)
Build your Ethereum trading strategy
Go long or short
Trade Ethereum volatility
Tax efficient trading
Trade on leverage
How to trade Ethereum
Choose a product type
You can trade Ethereum at City Index as a Spread Bet or CFD.
Decide when to Buy or Sell
When you trade Ethereum at City Index you do not own any underlying Ethereum assets. You are speculating on the price movements between Ethereum and the USD.
Manage your 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".
Ways to Trade Crypto
Tax-free trading in UK*
£ per point
Minimum trade size
50p per point
No UK Capital Gains Tax (CGT) or Stamp Duty*
Hedging. Non UK accounts
Minimum trade size
No UK Stamp Duty but you do pay UK CGT*
Commission free apart from Shares
Trade risk free with a demo account
What is Ethereum?
The Ethereum project is an effort to democratise the internet by creating a ‘world computer’. It seeks to replace the old model of servers or clouds hosting data with a new approach – ‘nodes’ provided by volunteers. The creators of Ethereum are seeking to introduce an alternative model for data and apps that is not dependent on big technology companies.
Ether, the currency that powers Ethereum, is used to pay for the transactions that occur on the Ethereum network. Its primary purpose is to reward the miners who are processing the data transactions on the Ethereum network.
Most people not actively involved with the Ethereum network refer to Ether as Ethereum. Ether was issued as part of the crowd funding campaign that launched Ethereum but millions of new coins are created every year.
How to trade Ethereum?
To trade Ethereum you don’t need to be working on the Ethereum network. It is possible to trade the price of this Crypto using CFDs, for example. Ethereum has a real world value in currency, which will go up and down over time. This is the amount of another currency one Ether can be exchanged for.
Go long or short: take advantage of both the rises and the falls in the Ethereum price.
Volatility: react more quickly to changes in price without owning Ethereum
Leverage: trade Ethereum with only a small initial investment
Ethereum can be traded around the clock, as it does not depend on a particular market being open.
Be aware, however, that using leverage to trade Ethereum means you will be more exposed to changes in the price. Make sure that you keep stop losses in place to protect yourself against sudden price reversals and you are aware of what your total exposure to the Ethereum price is.
Buying vs trading Ethereum
Buying Ethereum requires the use of specialist Cryptocurrency platforms. This can be both a cumbersome and time consuming practice and will make it difficult to react to short term changes in price.
Trading Ethereum using a CFD allows you to react quickly to price changes and take advantage of short term volatility. You don’t need to own Ethereum to be able to trade its price.
Is Ethereum risky?
Ethereum is a volatile market and although this presents opportunities for traders it can also represent risks. Both buying or trading Ethereum involves risk.
- Ethereum has high volatility and sharp price fluctuations are very likely
- Leveraged trading can magnify both your profits and losses
If you have further questions about trading Ethereum, please see out Crypto FAQs
Factors impacting Ethereum
There is technically an unlimited supply of Ethereum. While 60 million Ethereum ‘coins’ were issued as part of the Ethereum crowd funding campaign in 2014, approximately 18 million new coins are mined every year.
As with other Cryptos, it is important to understand that the ‘rules’ affecting the way Ethereum is mined and processed can be changed suddenly, and this can have a big impact on the price, for better or for worse.
Is trading Cryptocurrencies risky?
Cryptocurrencies can be extremely volatile and sharp market movements can mean that you can suffer significant losses quickly, and in some cases losses that are more than you initially invest. We strongly recommend that you understand the risks of trading Bitcoin and ensure that your strategy incorporates strong risk management tactics.
What is the City Index policy on Cryptocurrencies forking?
In the event that the current cryptocurrency splits into two, new cryptocurrencies are created, this is known as a hard fork. We will generally follow the cryptocurrency 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, 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.