Cryptocurrency Derivatives: A Warning from UK Finance Regulator – Bitcoints

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Published on November 15th, 2017 | by bitcoin

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Cryptocurrency Derivatives: A Warning from UK Finance Regulator

Cryptocurrency Derivatives:  A Warning from UK Finance RegulatorA U.K. finance regulator has warned consumers about a particular kind of derivative contract based on cryptocurrencies.
In a release on its website, the U.K. Financial Conduct Authority (FCA) cautioned would-be investors in cryptocurrency contracts-for-differences, or CFDs.
Under a CFD, the two parties involved agree to pay either side in the event that the underlying value of an asset – in this case, an amount of cryptocurrency – changes over time.
The agency said:
“Cryptocurrency CFDs are an extremely high-risk, speculative investment.
You should be aware of the risks involved and fully consider whether investing in cryptocurrency CFDs is appropriate for you.”

Source: Www.coindesk.com

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