Cryptocurrency examples
View our spread betting and CFD bitcoin and ethereum trading examples below.
Spread betting example: Buy Bitcoin/USD
You are interested in trading bitcoin and decide to open a spread bet position by trading bitcoin against the US dollar (Bitcoin/USD).
The current sell/buy quote is 6,410 / 6,510.
You believe that the value of bitcoin will increase against the US dollar, and therefore decide to buy £0.5 per point at 6,510.
This means you will gain (or lose) £0.5 for every $1 change in the value of bitcoin. Your total exposure is £3,255 (6,510 X £0.5).
Profitable bet The value of bitcoin rises against the US dollar, and the new price quote is 7,390 / 7,490. You decide to close your trade to realise your profit, so you sell £0.5 to close at 7,390.
- The price of bitcoin has moved 880 points in your favour, so your profit on the trade is therefore £440 (880 X £0.5).
Losing bet The value of bitcoin falls against the US dollar, and the new price quote is 5,630 / 5,730. You decide to close the trade to prevent further losses, so you sell £0.5 to close at 5,630.
- The price of bitcoin has moved 880 points against you, so your loss on the trade is therefore
£440 (880 X £0.5).
CFD trading example: Sell Ethereum/USD
You are interested in trading ethereum and decide to open a short CFD trade* by selling ethereum against the US dollar (Ethereum/USD).
The current sell/buy quote is 429 / 449.
You believe the value of ethereum will fall against the US dollar, and therefore open a sell CFD position, selling 5 units to open at 429.
This is the equivalent of selling 5 ether tokens, so you will gain or lose $5 for every $1 change in the value of ethereum.
Profitable trade The value of ethereum falls against the US dollar, and the new price quote is 350 / 370. You decide to take your profit, and buy 5 units to close your position at 370.
- The price has moved 59 points in your favour, so your profit on the trade is therefore $295 (59 X $5).
Losing trade The value of ethereum rises against the US dollar and the new price quote is 468 / 488. You decide to close your position and therefore buy 5 units at 488 to prevent any further losses.
- The price has moved 59 points against you and your loss on the trade is therefore $295 (59 X $5).
*Please note we may, at our sole discretion, restrict your ability to go short.
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