The FCA has warned about the risks of crypto-currency margin contracts
Service for control over financial transactions of great Britain (FCA) has published a warning to retail investors who are considering or turning to cryptocurrency marievik contracts (CFDs). The regulator said the risks associated with price volatility, funding costs, credit trading products and price transparency, claiming that they can happen in the markets of crypto-currency margin contracts.
"These products are extremely risky and speculative instruments... the Warning is to inform consumers about the risks of their purchase," – said in a statement.
The FCA considers margin contracts "complex financial instruments that allow you to speculate on the price of the asset". Regulatory body in the UK defines cryptocurrency as "virtual currencies are not issued or are not supported by Central banks or governments".
The statement also says that "the margin contracts are usually offered with the levers that multiply the impact of price changes on profits and losses". The regulator warns that when trading on margin investors "can quickly lose money."
Service for control over financial transactions reminds us that crypto-currencies "have been subject to significant volatility in the past year."
The FCA States that "cryptocurrency mazevye contracts vulnerable to sharp changes in price due to unforeseen events or changing market sentiment. Don't forget that the cost of some cryptocurrency in recent years has decreased more than 30% in one day", adding that urgent trades on the OTC market during these unstable market conditions lead to risk of large losses.
created by:Maxim Centurion | 15 Nov 2017 10:11
It is advice to the investors who wan to make investment in cryptocurrencies. They should make portfolio investment in different currencies instead of 01. If they lose money from 1 currency he may be got profit from the other currency. Crypto currencies are very risky but also very profitable.