Until now, the operator has been supporting only Bitcoin (BTC) and Ethereum (ETH)-based contracts for difference and spread betting.
One of the leading global online trading platforms, CMC Markets, has gone into deeper crypto waters after adding three new virtual coins to its digital asset-based contracts for difference (CFDs) and spread betting options. The three coins are XRP (XRP), Bitcoin Cash (BCH), and Litecoin (LTC), the UK-based trading venue said in a statement on Tuesday.
CMC Markets clients can now open positions on XRP/USD, BCH/USD, and LTC/USD pairs. The adding of those assets more than doubled CMC crypto services as the company previously offered only Bitcoin (BTC), and Ethereum (ETH).
XRP, BCH, and LTC are available to both institutional and retail investors as the company has recently expanded its crypto offerings to individuals.
“Since the successful launch of our cryptocurrency offering in March, and subsequent extension to retail clients in July, our clients have expressed interest in extending their trading options beyond bitcoin and ethereum, David Fineberg, group commercial director of CMC explained in the firm’s press release.
“We are pleased to offer them the chance to take a position on bitcoin cash, litecoin and ripple, three altcoins which continue to generate much speculation among traders.”
The contracts for difference as well as the spread bets allow clients to speculate on virtual assets without having to own cryptos, contrary to the digital currency exchange way of work. The CFDs trading in the European Union are subject to a limit of 2:1 for retail investors until January as part of the European Securities and Markets Authority (ESMA) investor protection package.
“CFDs are a leveraged product, which means that you only need to deposit a small percentage of the full value of the trade in order to open a position. This is called ‘trading on margin’,” as per CFDs’ overview on CMC Markets website.
“While trading on margin allows you to magnify your returns, losses will also be magnified as they are based on the full value of the position, meaning you could lose more than any capital deposited.”
CMC Markets operates in more than ten countries worldwide including the UK, Germany, France, Spain, Canada, Australia, New Zealand, and Singapore. The company poses a license from the British market regulator, the Financial Conduct Authority (FCA), which requires strict anti-money-laundering (AML) rules including know-your-customer (KYC) procedures.