Cryptocurrencies

RAW SPREAD from

0 point

LEVERAGE to

1:2

Minimum deposit of

500€

Opening an account is 

Easy and Fast

1. WHAT ARE CRYPTOCURRENCY?

Cryptocurrency is an electronic currency supported by a decentralized computer network and whose transactions and issuance are fully encrypted.

• For each currency, the number of units in circulation and the maximum amount of money in circulation are defined in advance and visible to all.
• Cryptocurrency cannot be counterfeited or usurped.
• It does not depend on a central bank or a state.
• Cryptocurrency works with a computer technology called Blockchain.

 

2. HOW DOES TRADING WITH CRYPTOCURRENCY WORK?

With Gravity Market, trading in cryptocurrency is based on a CFD (Contract For Difference) in order to use leverage.

3. WHAT ARE THE ADVANTAGES OF TRADING IN CRYPTOCURRENCY ?

Trading in cryptocurrency offers many advantages :

• When buying "real" cryptocurrency, you have to leave to your supplier or keep it in a hardware wallet. There is a risk that the provider will get hacked or that you make a mistake with your hardware involving a loss of your funds. CFD trading is therefore a much safer way to trade in cryptocurrency. In addition, CFDs are regulated financial products as opposed to cryptos.
• A market in which one has the ability to trade on margin with the use of leverage
• Market with low transaction costs
• A market in which one can be in a buy or sell position

4. WHY TRADE IN CRYPTOCURRENCY WITH GRAVITY MARKET?

• 8 Cryptocurrencies
• Leverage up to 1:2*
• From 0.1 lot
• 0 Raw spread point

 

* Gravity Market reserves the right to reduce the levers when the risk taken by the user is too high.

5. THE SPREAD

The spread, also known as the bid-ask spread, is the difference between the price at which you can buy a product and the price at which you can sell it. The spread is given by the liquidity provider.
The broker can increase the spread in order to make money, but can also choose not to touch it and take a fixed commission separately. In the latter case, the spread is defined as a zero raw spread.

Gravity Market applies a zero raw spread : customer spreads are the market spreads for all accounts.

6. CONTRACT SIZES

In cryptocurrency CFD trading, 1 CFD lot represents 1 CFD contract. Thus, the fluctuation of one cryptocurrency CFD causes the point of the cryptocurrency to change.
The value of a cryptocurrency point is 1 for the purchase or sale of a CFD contract.
For example, to buy a mini lot (X0.1) of an XBT/USD CFD contract, if the index is at 9700 points it will cost 9700*0.1=970 USD and you can buy it even cheaper with leverage.
In any case, if the index rises from 9700 points to 10,000 points, you will have a profit or loss of 0.1*(10,000 - 9,700) = 30 USD depending on whether you took a buy or sell position on the contract.
Below is an example for Bitcoin with a quote of 10,000 USD :

7. THE COMMISSION

When the trader wants to place an order, he has to pay a commission to the broker on the face value of a lot.

For example for a PRO account, by taking a position on Bitcoin, the trader will pay USD 2.50 for his in order and will pay USD 2.50 again for his out order for a total of USD 5.

8. MARGIN TRADING

When you trade in the cryptocurrency market, it is possible to increase your investment with a leverage effect.
To trade with leverage, the idea is to anticipate the margin required for the size of your trade.
Let's take the example of the XBT/USD CFD contract again, assuming that you always put in 970 USD of your capital. With 1:2 leverage you invest 2*970=1,940 USD in total.
When the Bitcoin rises to 10,000 points, you will have a profit or loss of 2*30 = 60 USD *.
However, leverage not only increases your potential gains, but can also cause you to incur significant losses that can sometimes exceed the capital available in your account. Therefore, it is best to start with transactions that do not use all your capital and with low leverage in order to get to know the market.

*Does not include commissions

9. THE SWAP

The SWAP (also called rollover) is an interest paid by the online broker's client for open positions from one day to the next. This interest rate is applied to any nominal amount whose trading position is open for more than 24 hours.
When you take a position on a cryptomony, you are in a way committing yourself to sell or buy it back within the day. If this is not done, we swap for a new day and the swap rate is applied to our position.
The swap varies according to several data :

• The online broker
• Type of position : buy or sell
• The negotiated instrument
• The number of days the position is open
• The nominal value of the position

The overnight swap rate depends on the 1-month interbank funding rate (e.g. LIBOR or EURIBOR) and the commission charged by the broker for the overnight swap.

A distinction must therefore be made between the rollover of a buy and sell position :

CFD rollover on purchase = Broker's commission - interbank rate

Rollover CFD on sale = Broker's commission + interbank rate

It is therefore cheaper to maintain a position when selling than when buying. Here is the calculation of the swap in detail :

DFC = (V*R)/D

With :

  • DFC = Daily Finance Charge = Swap
  • V = Notional value during closing
  • R = Interest rate given by the liquidity provider
  • D = Number of days. For the calculation, 360 days are used for all cryptosystems.

Other things to know :

• The rollover is calculated on the basis of the total value of a trade and not on the margin used.
• Banks are closed on weekend, but they continue to charge interest. Gravity Market therefore charges three days of rollover on Friday night at closing.

 

10. 10. CRYPTOCURRENCIES OFFERED BY GRAVITY MARKET

 

11. COMMISSIONS OFFERED BY GRAVITY MARKET

• Pricing and Trading starts every Sunday at 17:05 (US) Eastern Time (GMT -4:00).
• Pricing and Trading ends every Friday at 16:55 (US) Eastern Time (GMT -4:00).
• Pricing and Trading are interrupted daily for a system reset from 16:55 to 17:05 (US) Eastern Time.

TRADABLE CRYPTOMONEY

¹ In a trade you place one order to buy an asset and a second order to sell it.

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