Bitcoin price volatility prompts IG to review minimum trade size

Maria Nikolova

The broker has scaled the price down by a factor of 100 and has changed the minimum trade size from $/£0.05 per point to $/£5 per point.

The recent surge in Bitcoin prices has prompted electronic trading expert IG Group Holdings plc (LON:IGG) to change the trading conditions for the virtual currency.

The company has scaled the price down by a factor of 100: this means that a price of 293940 is now 2939.4. As a result of this, IG has also reviewed the minimum trade size, which is now $/£5 per point. In the previous pricing, this would have been the equivalent trade size of $/£0.05 per point.

The reason for the change, IG’s team explains, is simply that Bitcoin prices have gone up so steeply since the company started to offer it, and its volatility is at such a level that the trade sizes needed to be adjusted.

IG offers its clients to deal on Bitcoin currency pairs as CFDs or spread bets: instead of purchasing bitcoins, traders can speculate on their value as a forex pair. IG’s Bitcoin settlement is based on a combination of real-time prices provided directly by bitcoin exchanges.

Bitcoin markets are available from 8am on Sunday through to 10pm on Friday (London time).

To access Bitcoin FX pairs, traders may use the new IG Trading platform and/or the classic platform. In the new IG Trading platform, the Bitcoin instruments can be found under ‘FX’ in the fly-out menu. Also, traders can simply type ‘bitcoin’ in the search bar. On the classic platform, one has to go to ‘forex’ in the finder and, then, select ‘virtual FX’.

The recent Bitcoin price volatility, accompanied by the warmer attitude of regulators towards the crypto-currency, has prompted some online trading companies to enter into the virtual currencies businesses. The latest example comes from Japan, where GMO Internet Inc. (TYO:9449) launched its crypto-currency exchange business Coin on May 31, 2017.

However, many are asking what’s underneath the Bitcoin price steep increase. An interesting view has been provided to FinanceFeeds’ readers by Paul Orford, Head of Institutional Sales at AMB Prime. He has drawn a comparison between the current Bitcoin situation and the “Tulip Mania” that engulfed the Netherlands in the 17th century.

Read this next

Inside View

Broadridge report finds 27% of firms’ overall IT budget goes to digital transformation

“A new chapter in digital transformation is emerging. In our work with clients across the financial services industry we see leading firms are already reaping the benefits from digitalization and the use of technologies such as AI and blockchain/DLT, as they adapt to economic headwinds and new competitive dynamics”

Executive Moves

Ripple announces Monica Long as President

“I’m incredibly honored to take on the role of President at Ripple as we expand deeper into crypto-enabled services like liquidity, settlement and custody.”

Executive Moves

Arabesque AI appoints Carolina Minio Paluello as CEO

“Arabesque AI is uniquely positioned to service the asset management industry’s need to meet the growing market demand for hyper customised portfolios.”

Industry News

SEC Commissioner Mark T. Uyeda says standardized ESG measures are doomed to fail

“Because ESG ratings may be divorced from matters of financial materiality, they can reflect a particular political or social agenda.”

Industry News

Worldline launches digital payments suite in India

“Our low-cost innovative offering SoftPOS will empower SMBs in a big way to accept digital payments affordably.”


cTrader Web 4.5 Presents Guest Mode, Multiple Charting and Copy Improvements

Spotware has announced the release of its cTrader Web version 4.5, which comes with a whole range of features and improvements for all cTrader users.


SteelEye suggests integrated surveillance as Morgan Stanley fines employees over WhatsApp

“The use of integrated surveillance means firms can avoid unwanted regulatory attention by enabling them to self-report and self-remedy more efficiently when malpractice is flagged.”

Industry News

ASIC bans Gregory William Finerty for unlicensed FX algo trading bot

Bradford AI leased an algorithmic trading program known as ‘Robot 1’ to trade on the FX market, using an Australia-based over the counter contracts for difference (CFD) broker.


With the recent changes to St Vincent licensing, what will the future trends be for licensing in 2023?

New St. Vincent and the Grenadines regulations came as somewhat of a shock for those brokerages that are only regulated in SVG