Cedarfx platform offers investors a wide range of cryptocurrency CFDs trading opportunities, covering over 25 mainstream and emerging digital asset contracts, including key trading pairs such as Bitcoin (BTC/USD), Ethereum (ETH/USD), and Ripple (XRP/USD). According to the platform’s trading volume report for the first quarter of 2024, cryptocurrency CFDs accounted for approximately 18% of its total trading volume, with an average of 150,000 transactions executed per day, demonstrating the popularity of this product category. Compared with other traditional assets, cryptocurrency CFDs exhibit higher volatility characteristics. The median of their 30-day historical volatility has been fluctuating within the range of 50% to 100% for many years, providing traders with a significant possibility of profit from price differences. The platform’s liquidity pool integrates over 10 top liquidity providers worldwide, ensuring that even when the Bitcoin price fluctuates by more than 15% in a single day (similar to the situation during the LUNA collapse in 2022), the quote dispersion can still be controlled within a reasonable range. The average spread can be as low as 0.03% under normal market conditions (for example, the spread of the Bitcoin BTC/USD contract often remains in the range of 20 to 50 US dollars).
Traders operating cryptocurrency CFDs on Cedarfx benefit from flexible leverage options, with leverage ratios typically ranging from 1:2 (50% margin) to a maximum of 1:100 (1% margin). The size of leverage directly affects margin requirements and potential profit and loss amplification ratios. To open a Bitcoin CFD position with a nominal value of $10,000 using a 10x leverage, the initial margin required is only $1,000 (10% of the nominal amount). However, leverage is a double-edged sword: A 1% fluctuation in Bitcoin’s price means a 10% change in profit or loss for that position. In the case of Bitcoin rising by nearly 10% in a single day in March 2024, a 10x leveraged long position could theoretically yield a 100% return. The platform risk control system implements risk control through real-time margin level monitoring. When the margin ratio is lower than 120% of the available margin of the account (the warning line), the system may trigger a warning within 0.4 seconds. When the price drops below 50% (the forced liquidation line), it is necessary to automatically execute forced liquidation within about one second to limit the expansion of losses. This mechanism is particularly important when dealing with severe market fluctuations like the FTX collapse in November 2022 (where Bitcoin plunged by more than 25% within two days), effectively protecting the platform and users from systemic risks.
In terms of fee structure, cedarfx adopts a zero-commission model for cryptocurrency CFDs trading. Over 92% of the platform’s revenue comes from bid-ask Spread fees (Spread), while the remaining portion is derived from overnight financing interest. Overnight Financing (Overnight) is a key cost consideration for holding overnight. It is usually calculated based on the base rate (such as SOFR) plus or minus a fixed premium. For instance, the overnight fee rate for a long position in Bitcoin might be -0.05% per day (approximately -18.25% annualized), while for a short position, it could be -0.02% per day (approximately -7.3% annualized). The platform system precisely calculates and collects (or pays) overnight interest at 21:00 GMT every day. A long position in a Bitcoin CFD with a nominal value of $20,000 held overnight may incur an interest cost of approximately $10. This fee design makes it significantly different from exchanges that directly hold spot cryptocurrencies in terms of cost models. For high-frequency or intraday traders (accounting for approximately 65% of the platform’s crypto traders), as they do not touch the overnight settlement time point, they avoid interest costs. Combined with the typical spread cost of less than 0.3%, the execution efficiency of intraday strategies can usually be increased by 12% to 15%.
Security, liquidity and regulatory compliance form the cornerstone of Cedarfx’s provision of crypto CFDs trading. The platform implements bank-level data encryption technology (256-bit AES standard) and adopts a 100% customer fund isolation and storage system, completely separating user assets from the company’s operating funds and entrusting them to top financial institutions for custody. In terms of regulatory licensing, the platform holds licenses such as CySEC (Cyprus Securities and Exchange Commission) (No. XXXX/XX), ensuring that its operations comply with the strict EU financial market regulatory framework including MiFID II, especially in terms of customer fund protection, negative balance guarantee (ensuring that losses do not exceed deposits), and transparency reporting. In response to the ongoing regulatory pressure from the US SEC on major cryptocurrency exchanges such as Binance and Coinbase in 2023, this emphasis on the compliance of the mainstream financial regulatory system provides a higher level of credibility guarantee. Furthermore, its advanced order matching engine processes peak orders at a rate of up to 2,000 transactions per second, maintains an average order execution time of 39 milliseconds, and the median slippage control supported by high liquidity is less than 1%. Ensure the reliability and fairness of trading during extreme market events, such as the 300% surge in trading volume caused by the approval of the Bitcoin Spot ETF in January 2024.