financial product. To break it down, BTC CFD is more or less a bet being placed by a trader on the direction of Bitcoin based on levels set and the current available balance of such trader. Another factor that should be considered when trading Bitcoin is technical analysis. Leverage Plus500 allows leverage of up to 300:1.
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But there is no actual trade in the live market, so when the shorts close their positions at a loss, the broker pockets that money. There are a lot of places to get information on what directions you should look to trade. All depends on the law of demand and supply, the more the buyers the likely the hike in price and the more sellers the market registers, the more the chances that the price of Bitcoin is going to drop. Once you understand that nothing is certain when it comes to the financial market and you are comfortable losing money on your first try, then you can give Bitcoin CFDs a try. Leverage can be as high as 2000:1 depending on how bad the broker wants to attract traders.
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