On August 28, 2017, HYCM, a provider of online trading services, announced that it would expand its cryptocurrency offerings to include contracts for difference (CFDs) with Ether and litecoin paired to the US dollar.
According to the announcement, the move follows “unprecedented demand from clients” on the heels of introducing a bitcoin-to-USD pair in June of 2017. CFDs are contracts where parties agree to pay one another if an underpinned asset goes up or down in value; depending on whether it gains or loses value, one party pays the other. Investors engaged in such derivative markets do not actually own the assets the CFDs are tethered to, but instead trade on speculation as to whether the asset’s market will rise or fall.
Stavros Lambouris, CEO International for HYCM, explained the motivation for the company’s expansion, “The decision to expand our cryptocurrency CFD offering follows the impressive returns recently generated and increased demand from our clients wishing to capitalise on their performance without needing to physically purchase them.”
Jeremy Nation is a writer living in Los Angeles with interests in technology, human rights, and cuisine. He is a full time staff writer for ETHNews and holds value in Ether.