financemagnates.com
Dukascopy has become the latest contract for difference (CFDs) broker to add trading services with cryptocurrencies. On Tuesday, the Swiss company announced that it has added CFDs contracts of Bitcoin, Ether, and Litecoin.
The broker will add cryptocurrency trading for traders using the MetaTrader 4 platform. These new services will be added to both live and demo trading environments.
“Unlike traditional purchase of cryptocurrencies trading cryptocurrency CFDs (Crypto) allow speculative operations without having a digital wallet. There is no need to own cryptocurrency coins eliminating cybersecurity risks,” Dukascopy explained. Traders can take both long and short positions on the three listed crypto assets.
All three digital currencies will be listed against the US dollar. The announcement also detailed that traders receiving services under Dukascopy Bank will get maximum leverage of 1:5, while Dukascopy Europe clients will receive maximum leverage of 1:2.
“Due to the leverage provided on trading accounts the client can hold cryptocurrency CFD positions larger than [the] amount of traditional currency initially owned,” the broker added.
Crypto Trading Is in Demand
Dukascopy is adding crypto services after many of its competitors have added the asset class amid demand among traders. The volatile nature of cryptocurrencies also prompts traders to take more positions, thus benefiting the revenue of the brokers. Earlier, Saxo Markets also launched similar crypto trading services for its clients.
The crypto market is going through a recent turmoil. The Chinese crackdown on crypto mining has affected the market badly and all of the top tokens have shed significant value.
Meanwhile, Dukascopy’s business boomed over 2020 due to the influx of retail traders. The company posted operating income of the company touched CHF 40.1 million, making a record in its operational history.