Other than binary trading options, which are a great source of investment income, BitPlutos added Bitcoin forex and Contract for Difference (or CFD) as trading alternatives from which investors can benefit.
Foreign exchange explained
Foreign exchange, or forex, is the trade of one currency for another. Forex refers to the global market where trading of currencies occurs. In modern times, forex relates to investment trading, where traders speculate on the movement of currencies of two countries. The trade operates under a decentralized market, including buying, selling, and exchanges.
Moreover, unlike cryptocurrency, factors affecting forex operate on a larger scale. With buyers and sellers from all corners of the world, each day involves trading values in the trillions. As a global activity, macroeconomic events largely affect price movements. Other indicators would be capital markets, international trading, political conditions, and economic policies.
Some of these elements are put together and innovated by BitPlutos, while retaining the principles of foreign exchange trading, resulting in a unique forex trading option.
Trading forex on BitPlutos
The methods of trading Bitcoin forex via BitPlutos is divergent from traditional foreign exchange processes. Here, the values of currencies merely act as an underlying support for the traders’ predictions, which means you make Bitcoins using its fluctuations and not the asset itself.
BitPlutos simplified the trade by integrating some of binary options’ characteristics into its operation. Investors can choose the trading leverage, allowing clients to trade without putting up the full amount. Users also have the option to buy or sell the currency pairs, which relates to its movements in value. Furthermore, you can set a take profit amount that will stand for your maximum profit.
Features of forex trading:
– Forex trading is open as long as markets are available. It starts in Australia on Sunday evening and closes in New York on Friday.
– Forex markets are subject to liquidity, which means we can move large amounts of money into and out of foreign currency with minimal price movement.
– In forex, SPREAD is the combination of price and cost of transaction, which is the difference between the buying and selling price.
– Forex allows trading with leverage, which means the ability to trade more money on the market than what is actually in the trader’s account. If you were to trade at 1:50 leverage, you could trade 50 BTC on the market for every 1 BTC that was in your account. This means you could control a trade of 50,000 BTC using only 1,000 BTC of capital.
CFD (Contract for Difference)
This trading differs from the regular forex only in assets put into action. In CFD, you trade with everything but currency pairs (metals, energy, crops, other commodities, indices, stocks, etc). Specific factors influence CFD, such as supply and demand of a given commodity or trend changes associated with business sectors. Moreover, global events, like large employment shifts or internal political changes, mainly drive forex trading.