Plus500 Dropped MtGox & Adopted Btc-e For Bitcoin CFD

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Plus500, one of the largest Forex & CFD broker just ditched Mt Gox for Bitcoin CFD. For future trades, leveraged CFD will be based on pricing from another leading exchange Btc-e.  Bitcoins are now traded with leverage of 1:10 and expire daily. UK licensed Plus500 was the first forex broker to launch Bitcoin CFD trading in April 2013. Since the time of launch in April, Plus500 was issuing contract that tracked prices of bitcoins on MtGox.

btc-e plus 500

The difference in value of bitcoins from other exchanges around $350 on MtGox, combined with wide spreads, has apparently caused difficulties for Plus500. At the time of writing Bitcoins were traded at Mt Gox on an average price of $244 while same Bitcoin was being traded at Btc-e for $600. According to traders, Plus500 has recently made changes and adopted Btc-e as price indicator as well as creating a daily close. With the daily close at 10PM GMT, all positions are closed automatically at market price, with traders needing to reopen new orders every day, thus limiting their ability to speculate on the appreciation of bitcoin prices for the long term. However it is expected that they will resume Monthly Close very soon.

For those who don’t know CFD, CFD stands for “Contracts for Difference” in other words, CFD allows you to trade on Bitcoin pricing without owning the underlying instrument itself. It’s just like betting with the broker that the price will go up or down. If you still have any doubt about CFD then go through this post : Learn The Basics Of Bitcoin Trading : CFD Guide

Also check : Guide To Buy / Sell Bitcoin, Litecoin With Plus500 CFD.

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