CMC Markets has introduced three new crypto indices to its trading offering, each made up of a different group of cryptocurrencies, as diversification provides broad exposure and mitigates risk of volatility in specific coins. ‘All Crypto Index’, ‘Major Crypto Index’ and ‘Emerging Crypto Index’ are now available for trading.
The leading retail FX and CFD provider has rolled out to its customers the ability to spread bet and trade CFDs on three new cryptocurrency indices bespoke to CMC, which gives the company full control over composition and absolute transparency in terms of pricing. The firm claims its crypto index spreads will be tighter than those of the individual underlying coins.
CMC Markets’ Major Crypto Index includes leading cryptocurrencies such as bitcoin, ripple, bitcoin cash, ethereum and litecoin, while the Emerging Crypto Index is based on dash, EOS, monero, NEO, stellar lumens, cardano and TRON. The All Crypto Index combines all of the above constituents and uses a bespoke weighting methodology to avoid dominance by any one coin.
David Fineberg, Deputy Chief Executive Officer, commented:
“Cryptocurrencies are moving back into focus for many traders, given the price action seen in the first few months of the year. These new indices allow CMC Markets’ clients to gain exposure to a bundle of different coins, while doing this as a single transaction means order minimums and trading costs are also kept low. Our proprietary Next Generation trading platform ensures that we can easily cater to client demand with innovative products like this and will continue to ensure we are offering access to instruments which are most appealing for today’s trading community.”
The broker has recently updated its cryptocurrency offering to include seven new digital currencies – taking the total number of coins to twelve – and lowered the margins for professional clients across all their original cryptocurrencies as well as spreads for both retail and professional clients across all their original cryptocurrencies.
In April 2019, CMC Markets announced the ability to spread bet and trade CFDs on the US Fang Plus index, thus exposing customers to a balanced portfolio of highly-traded growth stocks from next-generation technology companies, including Facebook, Amazon, Netflix, Alibaba and Baidu.
Just ahead of releasing full-year results for FY 2019, CMC Markets announced a trading update on its overall performance, having noted a great reduction in client trading activity and challenging market conditions in the fourth quarter of 2018 heavily influenced by the implementation of the ESMA intervention measures on 1st August 2018. This measure has made a negative impact on revenue generation: down by 37 percent YoY at £110 million.
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