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mike91

Ripple XRP added to Plus500 trading platform

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Plus500 Ltd operates its CFD business through its subsidiaries: Plus500UK Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA), FRN 509909; Plus500AU Pty Ltd, ACN 153 301 681, AFSL # 417727, issued by the Australian Securities and Investments Commission is authorized to issue these products to Australian residents. Derivatives issuer licence in New Zealand, FSP #. 486026 authorises us to issue these products to New Zealand residents. Plus500AU Pty Ltd, is also an authorized Financial Services Provider in South Africa, FSP 47546. You do not own or have any rights to the underlying assets. Please consider the Disclosure documents available on our websites. Plus500CY Ltd which is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) SEC registration number 250/14.

Office:
Plus500CY Ltd, 1 Siafi Street | 3042 Limassol (Cyprus)
Registered company number: HE 333382

 

@zerpdigger seems they are authorised by UK's Financial Conduct Authority. It's nice that they can legally offer cryptos for CFD trading.

I know they are a pretty big trading platform and have a good reputation for many years. It's pretty well known among traders in Holland I believe.
Good thing they have: when a market goes down they have a protection built in; you can not lose more money than you deposit there (there are trading platforms where this is not)

Important thing for people who are interested: start with little money or use a demo account with fake money.
Virtual currencies trades seem to expire and automaticly close there after some time (not sure how long, maybe 12 or 24h?). Plus500 is really meant for quick trading. Don't leave your virtual currency trades open for days if you don't want to be suprised.
 

Edited by edwin90

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CFDs allow you to bet on price movements without actually buying or selling any real crypto. It simply tracks the real spot market. Like a futures contract without delivery. Good for hedging and of course speculating. 

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6 minutes ago, chokeberry said:

CFDs allow you to bet on price movements without actually buying or selling any real crypto. It simply tracks the real spot market. 

 

 

The broker has to buy "real" crypto sooner or later. If all traders enter the long position (and no one enters the short position) and each of them makes $100 profit, where will the broker get the money to pay these profits to the traders?

 

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3 hours ago, edwin90 said:

? If you live in Europe, and buy with USD there, you have to consider the fluctuations of USD. But that's nothing special?

Not so serious lol

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5 hours ago, T8493 said:

 

The broker has to buy "real" crypto sooner or later. If all traders enter the long position (and no one enters the short position) and each of them makes $100 profit, where will the broker get the money to pay these profits to the traders?

 

I don't even know where to start on the lack of logic on this sentence and this entire thread. First, CFDs prices are driven by the Broker who is also the Market Maker. Essentially, they can make any price they want and will stop people out if there is a large concentration of stops in a certain price level. They are the other side of the trade.  Your loss, their gain. 

If there is a situation where a loss occurs, these contracts are cash settled. So they will pay the difference in loss in USD, NOT XRP. 

The addition of XRP to this broker does not add to the liquidity or one iota to the reputation of XRP. In fact,  this is damaging to XRP. Instead of people trading on the exchange and using real XRP, they will trade on a broker platforms that just imitates the price.This takes away from its liquidity. Ripple should reach out and ban the use of CFDs on XRP. 

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33 minutes ago, Spekul8 said:

I don't even know where to start on the lack of logic on this sentence and this entire thread. First, CFDs prices are driven by the Broker who is also the Market Maker. Essentially, they can make any price they want and will stop people out if there is a large concentration of stops in a certain price level. They are the other side of the trade.  Your loss, their gain. 

If there is a situation where a loss occurs, these contracts are cash settled. So they will pay the difference in loss in USD, NOT XRP. 

The addition of XRP to this broker does not add to the liquidity or one iota to the reputation of XRP. In fact,  this is damaging to XRP. Instead of people trading on the exchange and using real XRP, they will trade on a broker platforms that just imitates the price.This takes away from its liquidity. Ripple should reach out and ban the use of CFDs on XRP. 

 

CFD is a contract between traders and e.g. a broker. A broker is on the other side of all long and short CFD contracts and it has some "net exposure" to XRP CFDs. Brokers are often not interested in taking the risk of the adverse price movement and therefore they hedge this risk, e.g. by buying the sufficient amount of "real" XRPs on the "real" market (or by finding some other liquidity provider who is prepared to take this risk).

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29 minutes ago, T8493 said:

CFD is a contract between traders and e.g. a broker. A broker is on the other side of all long and short CFD contracts and it has some "net exposure" to XRP CFDs. Brokers are often not interested in taking the risk of the adverse price movement and therefore they hedge this risk, e.g. by buying the sufficient amount of "real" XRPs on the "real" market (or by finding some other liquidity provider who is prepared to take this risk).

First, they are not always on the other side of each trade. Because they are not interested in the risk as you mentioned, they will offset trades between their players.  Finding a liquidity provider to transfer the risk to is a hedge if for example there is a real big player they don't want to trade against.  Holding a "real" XRP will not provide a hedge, how will it? PLEASE explain. Not trying to be argumentative, just trying to understand why a CFD holder would hold a physical. There are CFDs on Oil, Gold, Silver, etc. Broker do not hold physicals to offset risk. 

We can talk semantics all day, but in the final analysis, companies like Plus500 are known market makers. They know the small spec behavior and their entire system is geared to trade against them.  I still insist that leveraged trading does nothing for the price of XRP in the long run and will cause severe pain to its players. 

 

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