Jump to content
  • 0

Does Taking Exposure To Bitcoin Via A Spread Bet Avoid Certain Market Infrastructure Risks And Other Hassles


Hedge99

Question

If I open a spread bet in Bitcoin this will give me investment exposure to Bitcoin, but does this avoid certain risks and other hassles were I to buy Bitcoin itself?  For example I wouldn't be required to open a Bitcoin wallet, I would not need to worry about the counterparty risk associated with Bitcoin exchanges, I wouldn't have to worry about my wallet  being hacked / frozen / locked or trading liquidity issues.  Apart from the normal investment risk, is my only other risk that of credit risk to IG?  Thing is though, is IG taking an exposure in the underlying which I will indirectly be exposed to if there is a problem.

Obviously I will need to upgrade my account to Professional status to trade in Bitcoin spread bets.

My first post on here.  Thanks, Regards.

 

Link to comment

1 answer to this question

Recommended Posts

  • 0
4 hours ago, Hedge99 said:

If I open a spread bet in Bitcoin this will give me investment exposure to Bitcoin, but does this avoid certain risks and other hassles were I to buy Bitcoin itself?  For example I wouldn't be required to open a Bitcoin wallet, I would not need to worry about the counterparty risk associated with Bitcoin exchanges, I wouldn't have to worry about my wallet  being hacked / frozen / locked or trading liquidity issues.  Apart from the normal investment risk, is my only other risk that of credit risk to IG?  Thing is though, is IG taking an exposure in the underlying which I will indirectly be exposed to if there is a problem.

Obviously I will need to upgrade my account to Professional status to trade in Bitcoin spread bets.

My first post on here.  Thanks, Regards.

 

Hi @Hedge99,

Thank you for your post and welcome to the IG Community.

Effectively, you do not need hold a Crypto wallet to trade on Cryptos with IG. You are betting on price changes.

Something you may consider is the overnight funding:
"Our daily overnight funding rate is currently 0.0347% (12.5% per Annum) for bitcoin, 0.0417% for the Crypto 10 Index and 0.0556% (20% per Annum) for all other cryptocurrency markets. At present, clients with a long position will pay this overnight funding rate, while clients with a short position will receive on the overnight funding rate. In addition, a 7.5% per-annum IG admin fee will also apply for both long and short positions."

https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/products-markets-and-trading-hours/what-are-igs-bitcoin-spread-bet-product-details

IG will hedge your exposure in the underlying market,so our interests are aligned with yours. you won't be exposed to IG exposure.

I hope that it helps !

All the best - Arvin

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • If someone is interested, 2,4% for staking USDT  https://wizerpeople.com/?aff=Jowich  
    • Wizerpeople is a platform, which allows users to invest in private online and offline startups. Nowdays, there are more and more people who want to get into the investments market and make profits by investing in promising projects, but most of them do not have sufficient capital for large investments, so these investments remain risky. Wizerpeople solves this problem by providing an opportunity for small and intermediate investors to invest in private startups. Each user of the platform have an opportunity to register and invest in any provided type of business without huge investing xperience, signing documents or any special requirements. Investment and funding of private companies became so simple as never before with Wizerpeople. https://wizerpeople.com/?aff=Jowich
    • Another offers of a unique crypto loan service that stands out in the market due to several key features is already catching the attention of many. One of the primary unique aspects of Bitget's crypto loan service is its flexible borrowing options, allowing users to borrow various cryptocurrencies with different terms and interest rates based on their individual needs. This flexibility provides users with more control and customization over their borrowing experience. Additionally, the exchange crypto loan service is known for its competitive interest rates, which are often lower than traditional financial institutions. This cost-effectiveness makes it an attractive option for users looking to leverage their cryptocurrency assets without incurring high borrowing costs. Moreover,  platform is designed to provide a seamless and user-friendly experience, making it easy for users to manage their loans, track their borrowing history, and make repayments efficiently. The intuitive interface and comprehensive dashboard enable users to monitor their loan status and manage their assets effectively. Another unique feature of the exchange crypto loan service is its security measures, including robust encryption protocols and secure storage systems to safeguard users' assets and personal information. This commitment to security helps instill trust and confidence among users, ensuring a safe borrowing experience. I like to ask veterans PF in the community on what percentage of your collateral do you loan?
×
×
  • Create New...
us