2013-04-29 bitcoin-square: Plus500 now offers BTCUSD instrument

[nurbili]

Online Broker Plus500 now offers a Bitcoin – BTCUSD instrument with shortselling: http://bitcoin-square.com/online-broker-plus500-now-offers-a-bitcoin-btceur-instrument-with-shortselling/

Lot’s of peope use Plus500 software, most of them are not professionals. This means that not only more and more people will be able to trade Bitcoin to increase the volume, also they might get interested in Bitcoin by the trading platform, even if trading turns out to be nothing for them.

Bitcoin / USD (BTCUSD) CFD, see also: http://www.plus500.com/Instruments/BTCUSD

edit: link added

[kiko]

13x leverage on bitcoin! Are these brokers insane?

[ThePok]

only 4x  13 would be too cool

[cbeast]

They offer a demo account to try-before-you-buy with no risk.

[kiko]

only 4x  13 would be too cool

Oh, yeah you're right. I clicked around a bit, must have been on a different page when I looked at the stats.

[seleme]

The site is not available from United States

Bosnia neither but that's not surprise, US is.. guess it's only for some private bitcoin island

[misterbigg]

What kind of bullshit is this? Are they set up to send and receive Bitcoin deposits? Or is this purely "paper Bitcoin?" (i.e. notional). Is everything cash settled or can you withdraw Bitcoins after a purchase?

[StarenseN]

^ It's CFD bitcoin trading so like paper yes.


Hmm... I'm dealing with the software but can't find the BTC/USD to trade with. Do some other people have the same issue ?

[Grinder]

Be aware that like most internet FX sites, this is a more of a gambling site than a currency trading site. The deposit bonus and this point in their 44 page user agreement proves that pretty clearly:

24.1.7.  you will not enter into any Transaction for the purposes of arbitrage, scalping or to exploit any temporal and/or minor inaccuracy in any rate or price offered on the Trading Platform; positions held for a short timeframe are considered to be scalping.

[Loozik]

I do not mind founding the account at Plus500 with a few bucks required just to get a reasonably reliable real-time data feed + to get ability to perform basic technical analysis.

Did I say I wouldn't mind? - Heck! - I'd love to 

[StarenseN]

"The Bitcoin / USD was in test mode for a while. Currently, the instrument is not offered by us anymore"

http://www.reddit.com/r/Bitcoin/comments/1ded1g/the_bitcoin_usd_was_in_test_mode_for_a_while/

[StarenseN]

Update (1pm GMT): It seems to be back http://uppix.net/f/8/8/a8b895166b6fb8c435e1deee09b27.png

[misterbigg]

This is pure bullshit - no Bitcoins actually change hands. This is a gambling website, and you are betting against the house. It's called a "bucket shop:"

From http://en.wikipedia.org/wiki/Bucket_shop_%28stock_market%29

As defined by the U.S. Supreme Court a bucket shop is "[a]n establishment, nominally for the transaction of a stock exchange business, or business of similar character, but really for the registration of bets, or wagers, usually for small amounts, on the rise or fall of the prices of stocks, grain, oil, etc., there being no transfer or delivery of the stock or commodities nominally dealt in."[1] People often mistakenly interchange the words bucket shop and boiler room, but there is actually a significant difference. A boiler room has been defined as a place where high-pressure salespeople use banks of telephones to call lists of potential investors (known as "sucker lists") in order to peddle speculative, even fraudulent, securities. However, with a bucket shop, it could be better thought of as a place where people go to make “side bets” – similar to a bookie.

Plus500 is a bucket shop and cannot accept U.S. customers (because bucket shops are against Federal regulations):

How to recognize a Bucket Shop broker:
http://ezinearticles.com/?How-To-Recognize-A-Bucket-Shop-Broker---Six-Signs-of-A-Fraud-Brokerage&id=6699723

Plus500 Review (indicates that they do not accept U.S. customers):
http://fxbuild.com/plus500-review/

[BitSmile]

Now it's the first thing popping up if you google bitcoin. You can't withdraw btc, it's like paper silver. They're in it to make money, not making bitcoin.

[marcus_of_augustus]

Now it's the first thing popping up if you google bitcoin. You can't withdraw btc, it's like paper silver. They're in it to make funny money, not making bitcoin.

fixed.

[2_Thumbs_Up]

This is pure bullshit - no Bitcoins actually change hands. This is a gambling website, and you are betting against the house. It's called a "bucket shop:"

From http://en.wikipedia.org/wiki/Bucket_shop_%28stock_market%29

As defined by the U.S. Supreme Court a bucket shop is "[a]n establishment, nominally for the transaction of a stock exchange business, or business of similar character, but really for the registration of bets, or wagers, usually for small amounts, on the rise or fall of the prices of stocks, grain, oil, etc., there being no transfer or delivery of the stock or commodities nominally dealt in."[1] People often mistakenly interchange the words bucket shop and boiler room, but there is actually a significant difference. A boiler room has been defined as a place where high-pressure salespeople use banks of telephones to call lists of potential investors (known as "sucker lists") in order to peddle speculative, even fraudulent, securities. However, with a bucket shop, it could be better thought of as a place where people go to make “side bets” – similar to a bookie.

Plus500 is a bucket shop and cannot accept U.S. customers (because bucket shops are against Federal regulations):

How to recognize a Bucket Shop broker:
http://ezinearticles.com/?How-To-Recognize-A-Bucket-Shop-Broker---Six-Signs-of-A-Fraud-Brokerage&id=6699723

Plus500 Review (indicates that they do not accept U.S. customers):
http://fxbuild.com/plus500-review/

So? You place bets on wether the price will go up or down. What's the problem? Are you against gambling?

This seems like the way speculation should be done in a free market. It's actually a more effective way of speculating since you remove the overhead of dealing with physical products. CFD trading still has an indirect effect on the bitcoin price the same way actual trading of bitcoins would. If there is a lot of buying pressure on the CFD it will drive the price up making it diverge from the real bitcoin price. This would create an arbitrage opportunity, meaning you could short the CFD and buy bitcoins and gain regardless of where the price goes, giving you a riskless* return. Doing this would drive both prices towards eachother again.

So again, what is the problem with this? The only effect of people trading these instruments will be increased volume on regular exchanges from people arbitraging. More people having a say on the price is good since it reduces the power any single individual have.

*There is still the third party risk of a company with your money going bust etc.

[kjlimo]

This is pure bullshit - no Bitcoins actually change hands. This is a gambling website, and you are betting against the house. It's called a "bucket shop:"

From http://en.wikipedia.org/wiki/Bucket_shop_%28stock_market%29

As defined by the U.S. Supreme Court a bucket shop is "[a]n establishment, nominally for the transaction of a stock exchange business, or business of similar character, but really for the registration of bets, or wagers, usually for small amounts, on the rise or fall of the prices of stocks, grain, oil, etc., there being no transfer or delivery of the stock or commodities nominally dealt in."[1] People often mistakenly interchange the words bucket shop and boiler room, but there is actually a significant difference. A boiler room has been defined as a place where high-pressure salespeople use banks of telephones to call lists of potential investors (known as "sucker lists") in order to peddle speculative, even fraudulent, securities. However, with a bucket shop, it could be better thought of as a place where people go to make “side bets” – similar to a bookie.

Plus500 is a bucket shop and cannot accept U.S. customers (because bucket shops are against Federal regulations):

How to recognize a Bucket Shop broker:
http://ezinearticles.com/?How-To-Recognize-A-Bucket-Shop-Broker---Six-Signs-of-A-Fraud-Brokerage&id=6699723

Plus500 Review (indicates that they do not accept U.S. customers):
http://fxbuild.com/plus500-review/

So? You place bets on wether the price will go up or down. What's the problem? Are you against gambling?

This seems like the way speculation should be done in a free market. It's actually a more effective way of speculating since you remove the overhead of dealing with physical products. CFD trading still has an indirect effect on the bitcoin price the same way actual trading of bitcoins would. If there is a lot of buying pressure on the CFD it will drive the price up making it diverge from the real bitcoin price. This would create an arbitrage opportunity, meaning you could short the CFD and buy bitcoins and gain regardless of where the price goes, giving you a riskless* return. Doing this would drive both prices towards eachother again.

So again, what is the problem with this? The only effect of people trading these instruments will be increased volume on regular exchanges from people arbitraging. More people having a say on the price is good since it reduces the power any single individual have.

*There is still the third party risk of a company with your money going bust etc.

once you become a day trader... the line between gambling and financial investments becomes very blurry!

[StarfishPrime]

What kind of bullshit is this? Are they set up to send and receive Bitcoin deposits? Or is this purely "paper Bitcoin?" (i.e. notional). Is everything cash settled or can you withdraw Bitcoins after a purchase?

It's just a virtual trade of a virtual currency, or a virtual virtual instrument.

So: If you place a bet on Betsofbitcoin on whether or not they'll keep this BTC/USD CFD, you'd be making a virtual wager with a virtual currency on a virtual financial instrument based on a virtual currency.

In other words, similar to the business model of JP Morgan and most of the other market makers, just on a smaller scale.

[capoeira]

How to recognize a Bucket Shop broker:
http://ezinearticles.com/?How-To-Recognize-A-Bucket-Shop-Broker---Six-Signs-of-A-Fraud-Brokerage&id=6699723

funny that the text mentions Plus500 as a "real broker" at the end.



does anybody know why this broker blocks IPs from Brazil?