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What are the benefits of CFD trading and Spread Betting on Bitcoin markets?
- When you trade Bitcoin as a Spread Bet or CFD, you are speculating on the price movement of the underlying Bitcoin market – with no requirement to own the underlying asset. You can choose to go long as well as short, giving you greater flexibility to take advantage of market movements in both directions.
- By Spread Betting on Bitcoin, you are exempt from UK Capital Gains Tax on any profits you earn.
- Unlike buying Bitcoin directly, you can trade on the price movement of Bitcoin at City Index without opening a virtual wallet or downloading complicated software.
- When you trade CFDs or Spread Bet, you’ll be trading on leverage. This means you have a larger exposure to the market with less required capital.
- Remember, trading on leverage can be beneficial because it can magnify profits. However, should the market move against you, it can also magnify losses.
Trading Bitcoin at City Index
Our Bitcoin markets are open during FX market hours, so you can trade Bitcoin 24-hours a day. We price Bitcoin against the US dollar ($), Pound Sterling (£), Euro (€) and Australian dollar (A$) - and our prices are quoted in pairs.
The first price is the Sell price. The second is the Buy price. Choosing to Sell is known as “going short”, while opting to Buy is called “going long”. As a Spread Bet, you can set the amount you want to trade per point, depending on whether you think the market will go up or down. You can trade on Bitcoin at City Index from as little as 50p per point.
Functionality like Stop Losses and Take Profits can help you lock in profits and cap your losses. These innovative tools play an important part in any risk management strategy.
At City Index, you can react quickly and confidently to market movement. We provide powerful charting and risk management tools. And help you stay on top of market trends, with our incisive news and exclusive analysis.
Popular Bitcoin trading strategies
- Some investors trade Bitcoin using a day trading strategy: where the focus is on short-term market volatility, with clients closing their position at the end of the day.
- Swing trading is a strategy that identifies key market trends, with traders following the direction and momentum of the market until the next reversal.
- Holding Bitcoin overnight is not recommended due to higher than normal levels of volatility.