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XBT Provider AB Bitcoin and Ether

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1 hour ago, SAMMYDAVID said:

Whoops, BTC and BCH just took a short tumble. I got stopped out n I think I'll sit on the BTC sidelines for now

unfortunate but it does do that quite often, and not helped by the massive spread which doesn't get mentioned on BTC threads very often for some reason.

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yeah, I've noticed the crypto spreads are seriously wide on IG. It doesn't encourage crypto trading here, that's for sure

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8 minutes ago, SAMMYDAVID said:

yeah, I've noticed the crypto spreads are seriously wide on IG. It doesn't encourage crypto trading here, that's for sure

used to be in the 70s when first started now down to 36 but been at that for a long time it seems, they do keep an eye on the competition but if they all stick together  😳. see below.

 image.thumb.png.45e16c6e1d3b522e8b6d937eccf3ab70.png

Edited by Caseynotes

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Certainly seems the guys making the big bucks are the brokers! Do they have a conscience?

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Just now, SAMMYDAVID said:

Certainly seems the guys making the big bucks are the brokers! Do they have a conscience?

the broker makes on the spread and high spreads are associated with high volatility because of the higher than normal risk which, as you've discovered, is very much a feature of crypto. 

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I understand there would be some high operating costs to run a firm such as IG, but considering all the transactions occuring digitally, 40PS for one overnight trade seems exhorbitant to me

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11 minutes ago, SAMMYDAVID said:

I understand there would be some high operating costs to run a firm such as IG, but considering all the transactions occuring digitally, 40PS for one overnight trade seems exhorbitant to me

image.png.4445667d755e05c61329f5da6e5263d6.png

 

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@SAMMYDAVID,

I am not sure if you want to invest in Bitcoin long term or merely just want to trade the price movement shorter term. I do not know what your trading strategy is in regards to Crypto but all I would say is that the XBT Provider derivatives are excellent ways to gain exposure to Bitcoin in relation to a longer term investment.

I accept it is not for everyone and I accept that the FCA could announce a ban for retail clients anytime soon but I have been using these derivatives for a while now and I think they are brilliant for UK investors. I use the UK broker Hargreaves Lansdown to gain access to both the Bitcoin and Ether Exchange Traded Notes (ETN's) but if it not for you or just too much risk then fine but def. worth looking at. 

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Yeah, steering clear right at the mo. Too choppy for my short-term style. LT, not currently keen. Cryptos do definitely have potential, though, if one can somehow navigate the dips and ride the spikes. There may be a LT strategy that works well? Might be a case of having sufficient capital to see out the downside moves, to take advantage of the upside? I don't have sufficient capital for that, not at the mo anyhow.

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@SAMMYDAVID,

Crypto's are a very high risk asset to trade. They are also extremely volatile. I use trend following principles to trade Crypto's and I certainly do not use short term trading strategies as in my opinion that is for full time professional traders who are experienced and technically excellent. 

The only time I have conducted short term trading on Bitcoin et all was during the run up from $2k to $20k a couple of years ago. I was day trading Bitcoin and it worked a treat but apart from that the trends in Crypto have been longer term. So 'shorting' Bitcoin et all would have been very profitable just like having a long position with looser stop losses. In my experience the stop losses cannot be too tight but of course it depends on what specially is your trading strategy for Crypto's. 

If you have the wrong strategy on volatile assets then tight stop losses will make it extremely difficult for you. 

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This sharp drop below $10k in Bitcoin triggering stop losses is exactly why I like the XBT Provider Bitcoin products. It means you can invest, hold and leave until you are ready to sell. It is like investing in a company by buying shares online. 

There are no overnight charges for holding, just an initial charge of around £11.95 to buy and £11.95 to sell and that is it. Of course there is 'Currency Risk' as you are investing either in SEK or EUR and when this is converted back into GBP then it can work for you or against you depending on currency movements and fluctuations against Crypto. 

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@TrendFollower,

 

I just checked out XBT provider. It looks like a non margin vehicle. I will study it a bit more when I have the time and see if it is for me. Thanks!

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@HPbrand,

This product / investment vehicle / derivative is not for everyone. It is a high risk asset class in a high risk investment product. 

Yes it is a non margin vehicle and acts similar to if there was a Bitcoin ETF. This is actually an Exchange Traded Product (ETP) and behaves like an Exchange Traded Note (ETN). There is potentially 'Counterparty Risk'. 

Have a look at below. You may find it useful in assisting you when making a decision. Also there is the overhang of a potential retail ban on products like these so please do bear that in mind as well. 

https://coinsharesgroup.com/assets/etps/documents/btc/kiid_xbt_btc_en_2019.pdf

 

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