Crypto

Crypto Currency CFDs


Crypto Currencies have attracted the attention of investors and traders, beginners and experts, believers and sceptics. No other asset in history has recorded such jaw-dropping growth, with Bitcoin prices skyrocketing from around $400 in January 2016 to above $4,000 by August 2017 only to cross $9,000 in November 2017. Moreover, digital currencies are among the most volatile assets, offering opportunities to enter and exit the market within a matter of hours.



Physical Ownership vs CFDs

A CFD (Contracts for Difference) is where a buyer and a seller agree to pay in cash any difference in prices as the value of the cryptocurrency rises or falls, instead of buying the underlying asset itself. So, a contract is made between the two parties, based on their expectations of the price of Bitcoin on a specific future date. Read our article on Physical Crypto vs CFDs


Advantages of CFDs

  • No Wallet (Cryptos cant be stolen)
  • Multiple Asset Trading (Cryptos, Forex, Commodities etc)
  • FCA Regulated Broker

*The use of leverage can magnify profits but it can do the same for losses.


Contract Information

Pair Digits Margin % Minimum Contract Contract Size Min Contract (in units) Average Spread Occurences
BTC/EUR 2 50% 0.01 1 0.01 35.32444784 88126
BTC/GBP 2 50% 0.01 1 0.01 34.82204317 85201
BTC/USD 2 50% 0.01 1 0.01 36.29111229 83126
DSH/BTC 4 50% 0.01 10 0.1 0.000698974 19110
DSH/USD 4 50% 0.01 10 0.1 2.584142972 183757
EMC/USD 4 50% 0.01 1000 10 0.378741105 52546
ETH/BTC 4 50% 0.01 10 0.1 0.000947587 147697
ETH/EUR 4 50% 0.01 10 0.1 2.034300062 102159
ETH/USD 4 50% 0.01 10 0.1 2.460874544 102490
LTC/BTC 4 50% 0.01 10 0.1 0.000579462 10366
LTC/EUR 2 50% 0.01 10 0.1 8.006772223 102978
LTC/USD 4 50% 0.01 10 0.1 1.990435665 113966
XRP/USD 4 50% 0.01 1000 10 0.000278109 6208
XRP/EUR 4 50% 0.01 1000 10 0.058770742 89978
XMR/BTC 4 50% 0.01 10 0.1 0.028499067 78443

Leverage

Leverage allows you to hold a larger position than the initial cash deposit. Your initial outlay is supplemented to increase the value of your underlying investment. The higher the leverage, the larger the position the trader can execute for the same amount of the initial deposit.

Leverage increases the potential of high returns when the market moves in their favour. However, please note that leverage will act against you when the market moves in the opposite direction to your prediction.

Leverage Levels

Different leverage levels apply to different account types.

Margin Requirement

When an investor opens an account with a broker, an initial deposit is required in order to open a position in the market. The required cash deposit will act as a deposit to cover any credit risk. Depending on the agreement, the investor could be able to leverage up to a certain limit.

The margin requirement for a forex trade is calculated using the following formula:

Margin = (Lot Size * Contract Size * Opening Price) / Leverage

The examples below are based on a Standard/Classic account with a leverage of 2:1.



Note: Interest is not required to be paid on the borrowed amount, but if the investor decides to hold his position overnight, interest will be charged as the rolled over rates on the total positions held.

Margin Call

Margin Call is a level set by a brokerage that defines the minimum amount of money required to trade in the market. When your account falls below the margin call level, you will need to make an additional deposit to maintain your positions. Alternatively, you can close some of your positions to reduce your required margin. At Blackwell Global, Margin Call is set at 80%.

Stop Out Level

In the event you are unable to maintain sufficient funds in your account after hitting Margin Call, and if your account value depreciates to the Stop Out level, your positions will be closed automatically to prevent further loss to your capital. At Blackwell Global, Stop Out level is set at 50%.

Swaps

Often referred to as Rollover Interest, swaps are charged when holding onto a position overnight due to the difference in interest rates between the base currency and the quote currency.

Blackwell Global deals crypto trading on a “spot” basis. All trades are settled in two business days from inception as per market convention. Swaps are automatically calculated and settled at 21:59 GMT (Server Time 22:59) on a daily basis and Blackwell Global does not arrange for physical delivery. Any open positions held from Wednesday to Friday on a trade date basis will be charged three times the value.

The extra payment is to cover the interest that would normally have been charged on Saturday and Sunday when the market is closed.

Swap Prices will be added shortly.


Specifications

15

No. of Cryptos

24

Trading Hours

5

Trading Days

50%

Margin

0.01

Min. Order Size

2

Server Time (GMT+)


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