If you want to know more about CFD trading, we’ve prepared a guide on the best Bitcoin CFD platforms. For example, profits made on CFD trading in the UK would be eligible for capital gains tax but since spread betting is considered gambling, it would not. You can set parameters to sell when the market hits a specific rate, but if you sell instantly, you’ll do so at the current price on your platform.Īnother difference between spread betting and CFD trading is that they’re often subjected to different laws in some countries. With CFD trading, you’ll first buy the asset you want to trade. Moreover, CFD platforms allow you to use leverage, which is also available in spread betting.Īt the same time, cryptocurrencies spread betting does have some differences from CFD trading. For starters, you don’t own the cryptocurrency you trade or bet on in both spread betting and CFD trading. Spread betting has some striking similarities to contract-for-difference (CFD) trading. In some cases, you will need to deposit cryptocurrencies instead of fiat currencies such as USD and GBP. You often have the option to cancel crypto spread betting transactions at any time, regardless of the take profit and stop loss settings you select. Once you have deposited your funds, the deal is done.
