Cryptocurrency examples| CMC Markets

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Cryptocurrency examples

View our spread betting and CFD bitcoin and ethereum trading examples below.

Spread betting example: Buy Bitcoin/USD

You are interested in trading bitcoin and decide to open a spread bet position by trading bitcoin against the US dollar (Bitcoin/USD).

The current sell/buy quote is 6,410 / 6,510.

You believe that the value of bitcoin will increase against the US dollar, and therefore decide to buy £0.5 per point at 6,510.

This means you will gain (or lose) £0.5 for every $1 change in the value of bitcoin. Your total exposure is £3,255 (6,510 X £0.5).

Profitable bet
The value of bitcoin rises against the US dollar, and the new price quote is 7,390 / 7,490. You decide to close your trade to realise your profit, so you sell £0.5 to close at 7,390.

The price of bitcoin has moved 880 points in your favour, so your profit on the trade is therefore
£440 (880 X £0.5).

Losing bet
The value of bitcoin falls against the US dollar, and the new price quote is 5,630 / 5,730. You decide to close the trade to prevent further losses, so you sell £0.5 to close at 5,630.

The price of bitcoin has moved 880 points against you, so your loss on the trade is therefore
£440 (880 X £0.5).

CFD trading example: Sell Ethereum/USD

You are interested in trading ethereum and decide to open a short CFD trade* by selling ethereum against the US dollar (Ethereum/USD).

The current sell/buy quote is 429 / 449.

You believe the value of ethereum will fall against the US dollar, and therefore open a sell CFD position, selling 5 units to open at 429.

This is the equivalent of selling 5 ether tokens, so you will gain or lose $5 for every $1 change in the value of ethereum.

Profitable trade
The value of ethereum falls against the US dollar, and the new price quote is 350 / 370. You decide to take your profit, and buy 5 units to close your position at 370.

The price has moved 59 points in your favour, so your profit on the trade is therefore
$295 (59 X $5).

Losing trade
The value of ethereum rises against the US dollar and the new price quote is 468 / 488. You decide to close your position and therefore buy 5 units at 488 to prevent any further losses.

The price has moved 59 points against you and your loss on the trade is therefore
$295 (59 X $5).

*Please note we may, at our sole discretion, restrict your ability to go short.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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