eToro implements max exposure limits to crypto CFDs
Online trading company eToro has published a notice regarding crypto CFDs.
Due to what the broker sees as extremely high volatility in crypto markets, it has implemented temporary maximum exposure limits for clients holding CFD crypto positions in certain countries.
These measures only apply to eToro clients who hold or wish to hold CFD crypto positions. eToro’s real cryptoasset offering remains unchanged.
The new valuation limits for crypto CFDs are:
- $3,000 per cryptoasset for BTC, ADA, ETH, and XRP
- $500 per cryptoasset for all other tokens.
Once the value of a trader’s position exceeds this exposure, the trader will not be able to place any new buy orders for that cryptoasset. For example, if you bought $50 of BTC as a CFD crypto position and it is now worth $3,500 you will not be able to place any new buy orders for BTC. This does not impact existing CFD crypto positions, but if you hold CFD crypto positions at or in excess of these limits you will not be able to place any new BUY orders.
CFD crypto exposure via copy positions or CopyPortfolios does not count towards this exposure limit.
eToro says it is working hard to ensure that this is just a temporary limitation as its goal is to enable its clients to participate fully in markets in a safe and responsible way.
“We would like to remind clients that cryptoassets are highly volatile and stress the importance of holding crypto as part of a diversified investment portfolio. We apologize for any inconvenience caused and thank you for your understanding”, the company said.
More information on this matter can be found here.
Anonymous
May 8, 2021 @ 10:45 am
2.5
Anonymous
May 14, 2021 @ 7:17 am
1