View our CFD bitcoin and ethereum trading examples below.
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 929 / 949.
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 929.
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.
The value of ethereum falls against the US dollar, and the new price quote is 750 / 770. You decide to take your profit, and buy 5 units to close your position at 770.
The price has moved 159 points in your favour, so your profit on the trade is therefore
$795 (159 X $5).
The value of ethereum rises against the US dollar and the new price quote is 1068 / 1088. You decide to close your position and therefore buy 5 units at 1088 to prevent any further losses.
The price has moved 159 points against you and your loss on the trade is therefore
$795 (159 X $5).
Cryptocurrencies, which are generally unregulated in themselves, are high-risk, speculative investments, which will impact any cryptocurrency CFD trades that you enter with us. The value of cryptocurrencies, and therefore the value of CFD Trades linked to them, is extremely volatile. They are vulnerable to sharp and sudden changes in price due to unexpected events or changes in market sentiment. CFD Trades are leveraged products. Therefore the combination of increased volatility and leverage has the potential to significantly increase your losses if the market moves against you, relative to CFD Trades based on other products. Furthermore, there are general risks in trading cryptocurrencies. Cryptocurrencies are unregulated in Singapore and you may not be entitled to certain regulatory safeguards. There are also cybersecurity risks, given cryptocurrencies are virtual currencies. Accordingly, you should only invest in cryptocurrency CFD Trades if you consider that you have the knowledge and experience of, and fully understand the risks associated with, both CFDs and cryptocurrencies.
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**Please note we may, at our sole discretion, restrict your ability to go short.