UK Spreadex Launches Bitcoin Trading

UK spread betting, Spreadex becomes the second regulated broker to begin offering bitcoin trading in the form of a spreadbet yesterday. (Props go to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates reader Jason Smith on alerting us about the broker). The volatile offering allows for both long and short selling, but does have its share of restrictions. Currently, trades are only available by phone, with spreads of 2.5%, and only 2:1 Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term. Additionally, placing stop orders in unavailable. Those are some hefty restrictions, but we imagine that they will loosen up as more firms enter the market.

Plus500 was the first broker to announced leverage trading last week (although there are conflicting opinions on whether it is available for live accounts). Like Plus500, Spreadex is a little known firm in the world of FX trading. So who is Spreadex? Spreadex is an UK regulated FCA firm who offers both sports and casino betting and financial trading, having acquired different brands over the years including the account book of MF Global Spreads in 2012. The firm currently offers accounts to both UK and non-UK customers with the exception of the US and Turkey. Unlike many other brokers, Spreadex doesn’t provide free demo accounts. Therefore users will need to open a live account (but can leave it unfunded) to see their platform.

To learn more about their offering Forex Magnates reached out to Spreadex. Answering why they launched bitcoin trading, a spokesperson from Spreadex said "We had received requests from a number of clients asking if we were considering offering leveraged trading on the price movements of Bitcoin. Our traders have been looking into the possibility of offering the market to sit alongside our other extensive list of markets, and we have now offered the market via phone trading access only."

Additionally, in relation to how order flow,will be handled and where the price is being derived, it was answered "Currently we’re making our own market, taking clients’ positions onto our book. But in the event we decided to hedge, we would look to use established exchanges where necessary." Also, they added that they are using MtGox pricing to establish their spreads.