Dukascopy is the latest Contract for Difference (CFDs) broker to offer cryptocurrency trading services. The broker added CFDs contracts of Litecoin, Ether, and Bitcoin.
The broker adds cryptocurrency trading for traders using the MetaTrader 4 Platform. The new services will be in both live and demo trading environments.
Crypto CFDs allow for speculative operations without having a digital wallet, unlike the traditional purchase of cryptos.
Traders don’t have to own crypto coins eliminating cybersecurity risks. They can take both short and long-term positions on the three crypto-assets.
All three currencies will be listed against the US dollar. Also, traders receiving services under Dukascopy Bank will get maximum leverage of 1.5. Dukascopy Europe clients will receive maximum leverage of 1.2.
The leverage provided on trading accounts allows clients to hold cryptocurrency CFD positions larger than the traditional currency initially owned.
Demand for Crypto trading
Dukascopy added crypto services after its competitors added the asset class amid demand among traders.
However, the volatile nature of crypto trading prompts traders to take more positions, hence benefiting the brokers’ revenue.
Earlier, Saxo Markets had launched a similar crypto trading service for its clients.
The crypto market is going through turmoil. The Chinese crackdown on crypto mining affected the market badly, and all the top tokens have shed significant value.
Meanwhile, the company’s business boomed in 2020 due to the influx of retail traders. The company’s operating income touched CHF 40.1 million, making a record in its operating history.