Cryptocurrency examples

View our spread betting and CFD bitcoin and ethereum trading examples below.

Spread betting example: Buy Bitcoin/USD

You are interested in trading bitcoin and decide to open a spread bet position by trading bitcoin against the US dollar (Bitcoin/USD).

The current sell/buy quote is 6,410 / 6,510.

You believe that the value of bitcoin will increase against the US dollar, and therefore decide to buy £0.5 per point at 6,510.

This means you will gain (or lose) £0.5 for every $1 change in the value of bitcoin. Your total exposure is £3,255 (6,510 X £0.5).

Profitable bet
The value of bitcoin rises against the US dollar, and the new price quote is 7,390 / 7,490. You decide to close your trade to realise your profit, so you sell £0.5 to close at 7,390.

The price of bitcoin has moved 880 points in your favour, so your profit on the trade is therefore
£440 (880 X £0.5).

Losing bet
The value of bitcoin falls against the US dollar, and the new price quote is 5,630 / 5,730. You decide to close the trade to prevent further losses, so you sell £0.5 to close at 5,630.

The price of bitcoin has moved 880 points against you, so your loss on the trade is therefore
£440 (880 X £0.5).

CFD trading example: Sell Ethereum/USD

You are interested in trading ethereum and decide to open a short CFD trade* by selling ethereum against the US dollar (Ethereum/USD).

The current sell/buy quote is 429 / 449.

You believe the value of ethereum will fall against the US dollar, and therefore open a sell CFD position, selling 5 units to open at 429.

This is the equivalent of selling 5 ether tokens, so you will gain or lose $5 for every $1 change in the value of ethereum.

Profitable trade
The value of ethereum falls against the US dollar, and the new price quote is 350 / 370. You decide to take your profit, and buy 5 units to close your position at 370.

The price has moved 59 points in your favour, so your profit on the trade is therefore
$295 (59 X $5).

Losing trade
The value of ethereum rises against the US dollar and the new price quote is 468 / 488. You decide to close your position and therefore buy 5 units at 488 to prevent any further losses.

The price has moved 59 points against you and your loss on the trade is therefore
$295 (59 X $5).

*Please note we may, at our sole discretion, restrict your ability to go short.

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