The company has added three crypto CFDs on MT4, consist of Bitcoin, Ether, and Litecoin. Trading crypto CFD allows clients to trade using leverage to speculate on crypto prices.
Dukascopy has now added CFD crypto trading instruments in the form of Bitcoin, Ether, and Litecoin on their MT4 platform. Previously, the Swiss broker only offered crypto trading. This new service will be added to both real and demo trading accounts.
The Benefit of Using Leverage
Unlike traditional trading crypto purchases, crypto trading CFDs allow traders to speculate without the need to buy crypto or store it in a digital wallet. Due to the absence of ownership of crypto coins, traders do not have to worry about the security of their crypto assets. With Dukascopy, Traders can take long (buy) and short (sell) positions on the three crypto-assets mentioned above.
All three digital currencies are traded against the US Dollar with traders using Dukascopy's bank services getting maximum leverage of 1:5, while Dukascopy clients in Europe will receive maximum leverage of 1:2. By utilizing leverage, clients can hold crypto CFD positions exceeding their initial capital.
Not only Dukascopy, but other brokers are also increasingly adding CFD crypto assets due to the increasing demand among traders. Plus, the volatile nature of cryptocurrencies encourages traders to take more positions, thereby benefiting brokers' earnings.
Recently, Dukascopy's retail business grew rapidly during 2020 due to the increasing number of new clients during the pandemic season. The company posted an operating income of CHF 40.1 million, the largest in Dukascopy's history.