- 1. Which Cryptocurrencies does City Index Offer?
- 2. How do Cryptocurrencies work?
- 3. What is a digital wallet?
- 4. Do I need a digital wallet to trade Cryptocurrencies?
- 5. How can I trade Cryptocurrencies?
- 6. Cryptocurrencies trading and taxes - what do I have to pay?
- 7. How much are Cryptocurrencies worth?
- 8. How does City Index price Cryptocurrencies?
- 9. Is there an overnight financing charge for holding Cryptocurrencies?
- 10. Does City Index offer a Cryptocurrencies trading platform?
- 11. What is the City Index policy on forking?
- 12. What are the margin rates to trade various Cryptocurrencies?
- 13. What are the available trading hours for Cryptocurrencies?
- 14. Can I trade Cryptocurrencies on MT4?
1. Which Cryptocurrencies does City Index Offer?
Cryptocurrencies are digital currencies, often peer-to-peer electronic cash systems which have become popular over the past few years and are founded on blockchain technology. Cryptocurrencies are not controlled or regulated by central banks, governments or traditional financial centres but are rather managed by corporations using secure blockchain verification for all transactions.
2. How do Cryptocurrencies work?
Because Cryptocurrencies are not regulated in the traditional sense by a central bank or government, they requires a system of distribution. Often Cryptocurrencies are “mined,” which means Crypto miners use time, powerful central processing units (CPUs) and large amounts of electricity to solve complex equations which add transaction records to a Cryptocurrency’s public, digital ledger or blockchain.
3. What is a digital wallet?
Most Cryptocurrencies are stored using a digital wallet, which is essentially an online bank account which stores Cryptocurrencies.
4. Do I need a digital wallet to trade Cryptocurrencies?
5. How can I trade Cryptocurrencies?
At City Index you can trade Cryptocurrencies in three ways, as a Spread Bet a CFD or on MT4. For more information, including pricing details, on these please view our relevant Cryptocurrencies Spread Betting and Cryptocurrencies CFD Trading pages:
Bitcoin Cash Spread Betting and CFD Trading information
6. Cryptocurrencies trading and taxes – what do I have to pay?
When you trade Cryptocurrencies as a CFD or as a Spread Bet you are not buying or selling the underlying asset, you are speculating on price movements in Cryptocurrencies. Spread Betting and CFD Trading are exempt from UK stamp duty. Spread betting is also exempt from UK Capital Gains Tax.
7. How much are Cryptocurrencies worth?
Like any asset the price of Cryptocurrencies may rise and fall and due to high volatility in the Cryptocurrencies market. Prices may surge or drop at greater rates than for more traditional assets. At the end of 2017, the total Cryptocurrency market cap was thought to be roughly $639 billion.
8. How does City Index price Cryptocurrencies?
Cryptocurrencies are traded on multiple independent digital asset exchanges around the world and the diversity of these exchanges can mean that there are different prices for Cryptocurrencies at different times and in different regions.
City Index offers competitive Cryptocurrency pricing based on prices models provided by multiple digital asset exchanges.
We use industry leading digital asset exchanges to produce a volume weighted average price that is representative of the underlying market. You can view our pricing information on our Cryptocurrency page or in the Market Information sheet in platform.
9. Is there an overnight financing charge for holding Cryptocurrencies?
Yes. Overnight financing is charged at 0.0411% per day for all Cryptocurrencies (May change due to market conditions. For a full list of charges, see our Cryptocurrency pages for Bitcoin, Ethereum, Litecoin, Ripple and Bitcoin Cash.)
Due to the higher than normal levels of volatility in the Cryptocurrencies market we strongly advise against holding positions overnight.
Please note: Cryptocurrencies financing charges are only applied to live trading accounts at City Index. Should you wish to calculate what financing charges would be on a relevant demo account position, you can do so using the formula below:
Size of position x closing price x financing charge (0.0411%) = Cost of financing
10. Does City Index offer a Cryptocurrencies trading platform?
11. 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.
12 What are the margin rates to trade Cryptocurrencies?
The margin rates for our retail clients trading Cryptocurrencies start at 50%.
13. What are the available trading hours for Cryptocurrencies?
Trading Hours are 22:00 GMT Sunday - 22:00 GMT Friday.
14. Can I trade Cryptocurrencies on MT4?
Yes. You can trade Bitcoin, Ethereum or Ripple as a CFD on MT4. The minimum trade size is 0.1, and you can trade commission free.
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