| Online Broker | Maximum Leverage in EEA | About |
|---|---|---|
| Plus500 | 2:1 Maximum Leverage in EEA | Plus500 offers 24/7 Bitcoin CFD trading on its user friendly trading platform About |
| Pepperstone | 2:1 Maximum Leverage in EEA | Pepperstone provides 24/7 Bitcoin CFD trading, offering a wide range of trading platforms About |
| IC Markets | 2:1 Maximum Leverage in EEA | IC Markets offers 24/7 Bitcoin CFD trading across its platforms About |
| City Index | 2:1 Maximum Leverage in EEA | City Index offers Bitcoin CFD trading on its user friendly platform About |
| FOREX.com | 2:1 Maximum Leverage in EEA | FOREX.com provides Bitcoin CFD trading on its user friendly Web Trader and its Advanced Trading Platform About |
Bitcoin Leverage and Margin Trading - What Is It
It is possible to trade Bitcoin CFDs using leverage or on margin. But what is Bitcoin CFD leverage trading ?
What is Bitcoin ?
Bitcoin is a network on the Internet used for sending and processing peer-to-peer payments in the cryptocurrency Bitcoin (BTC).
What is a cryptocurrency ?
A cryptocurrency is a digital currency, used for making payments on the Internet which has an electronic ledger of all transactions in the cryptocurrency (its blockchain), secured using cryptography and created and stored on the Internet.
What is leverage trading ?
Trading using leverage is trading with a market, without having to put up its full value while holding the position. Leverage is written as a ratio, showing what part of the full amount needs to be put up to trade it.
What is CFD trading ?
CFDs are Contracts For Difference and these are contracts between a trader and a CFD provider, which allow the trader to speculate on the price movement of an underlying financial market, without owning it.
CFDs let the trader trade with leverage. Thus it is possible to trade Bitcoin CFDs with leverage.
What is the maximum leverage allowed ?
In the European Economic Area (EEA) the maximum leverage for all cryptocurrencies, including Bitcoin is set at 2:1. Cryptocurrencies are highly volatile and lower leverage can help protect the trader, as increasing leverage increases risk.
What is margin ?
Margin is the percentage of the value of a market which must be put up to trade it. Thus 2:1 leverage is 50% margin.
If the trader does not own any cryptocurrency when trading it as a CFD, is a wallet needed ?
A wallet is used to store physical Bitcoin, i.e. the underlying financial market, as payments are sent from wallet to wallet. As the trader does not own the underlying financial market, they can trade it without a wallet or other means to store it.
