CORP. does not provide services for residents of the United States, Russian Federation, and BVI. That being said, users in the UK can still use decentralized platforms that operate purely onchain like dYdX or GMX to overcome any KYC issues.

Risk Metre: Leverage in Crypto Futures

• Be careful with online services – Exercise caution when considering online services for storing your funds.
• EToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs.
• Other institutions in the UK that are involved in the regulation of the crypto market are HM Treasury and the Bank of England.
• Please ensure you fully understand the risks and seek independent advice.
• In this trading strategy, you can take positions in the opposite of the underlying trend.

If you are carrying on a business that involves cryptocurrency transactions, then the rules are more complex. If the price of your asset has decreased since you acquired it, you have a capital loss you can offset against gains. The vast majority of crypto investors will be considered private investors. It all depends on the scale at which you’re doing it, but if you’re working a regular job alongside crypto investing – chances are you’ll be considered a private investor. She inherits the cost basis of £10,000, so she’s also made a capital gain of £15,000.

Who Regulates Crypto Trading in the UK?

This is because conventional forex trading markets are based on leveraged financial products. That is to say, as forex is typically traded in lot sizes of £/$ 100,000 – investors will make full use of leverage facilities. As illustrated in the example above, most traders will offload a futures contract before the expiry date. Not only does this allow you to lock in your profits, but also limits your potential losses.

Strategies When Trading Futures Contracts

Smash your trading goals on desktop or mobile with powerful tools like our daily report, chart features, and signal centre. We think it’s important you understand the strengths and limitations of the site. Although crypto finance operates in novel ways, well-designed standards and regulation could and should enable risks to be managed in the crypto world as they are managed in the world of traditional finance. Moreover, even were such provisions in place, there may be no one for regulators to engage and hold accountable.

Crypto prices

70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. For instance, traders can utilize leverage to trade in multiple markets at once rather than investing all of their money in one trade. In most cases, anyone buying, holding and selling cryptocurrency on their own bitcoin era account is considered to be undertaking investment activity and is subject to CGT. Income tax is usually applied to those buying, selling or receiving cryptocurrency through a trade.