CMC Markets, one of the global providers of the CFD markets, announced yesterday that they will begin offering the XRP option.
The announcement from the official Twitter account of the CMC Markets UK was as follows:
With CMC Markets, Ripple can now be done. The platform can be used for both peer-to-peer money transfer (RippleNet) and digital money (XRP).
What is difference contracts (CFD)?
The difference contracts market (CFD) is a kind of derivative trading platform that assists users who are trading on margin due to a decrease or rise in prices. However, the transactions made by investors create a profit or loss situation, depending on whether the market is moving in the selected direction.
Trading XRP with CMC Markets helps the investor to use “spread bet” or CFD accounts to predict where the price, which is a kind of BET, will go. Unlike traditional stock markets, CMC Markets allows users to predict price movements without having real crypto money.
These transactions are based on the price movement forecast of the currency, not on the XRP purchase.
In the official paper published by CMC Markets, the following were included::
With these transactions, you do not buy Ripple. Instead, you are opening a position that will increase or decrease the value depending on the price movement of XRP against the dollar.
Traders are required to use these products and to open a position to deposit the money of the rate of a specified percentage of the full value of a transaction. This first guarantee allows traders to leverage and trade larger amounts. These leveraged trades, which allow you to use the full value of the position, mean that the returns and losses are increased equally.
Difference contracts are also at a greater risk of damage next to high profit potential
In this type of derivative, which is very risky, there is the risk of loss of all collateral deposited as well as the opportunity to make high profits.
This type of option is often used by the public because of its tax exemption. So many sources provide information that binary option transactions compete with foreign exchange transactions in the country.
The transactions that will be opened through XRP will not contribute to the XRP Capital, but will only be equivalent to betting on the price image against the dollar. The benefit of XRP tokenine is that it is only likely to be in a way that will increase its awareness.