Forex and CFD broker Axi (a regulated company from Australia) has expanded its asset list by adding more than 30 cryptocurrency CFD contracts, including the most popular and actively traded crypto assets such as Bitcoin, Ethereum, Cardano, and Solana, among others. In addition to traditional cryptocurrencies, Axi offers tokens from DeFi (decentralized finance), Ethereum tokens, and smart contract tokens.
In this case, the CFDs are based on the price of digital assets against the US dollar and the Japanese yen. For these contracts, the company offers a maximum leverage of 1:200 with competitive spreads. Moreover, they can be traded 24/7.
The list of crypto assets offered by Axi as underlying assets for CFD trading is provided below:
You can find more information about the Axi broker and its services in the following guide: Axi Broker Review
Advantages of Axi’s Cryptocurrency CFDs
- They allow both short and long trading, giving traders the opportunity to profit from both rising and falling cryptocurrency prices.
- It’s a simpler way to trade cryptocurrencies since there is no need to store the traded cryptocurrencies in wallets as required in spot market transactions.
- They accurately replicate the prices of the underlying cryptocurrencies.
- They are leveraged instruments (with leverage up to 1:200) that amplify the trader’s purchasing power, enabling trading with larger volumes, increasing the potential for profits, but also the risk.
- They can be traded 24/7.
- Axi accepts all types of trading strategies for cryptocurrency CFDs and also allows the use of Expert Advisors (EAs).
- Zero commissions on all trades.
- Competitive spreads (0.35).
Am I buying or selling actual cryptocurrencies when trading CFDs?
It is important to understand that when trading cryptocurrency CFDs on Axi or any other broker, the trader is not buying or selling real assets. At no point do they take possession of the bitcoins traded in, for example, a Bitcoin CFD, as in a traditional cryptocurrency exchange spot market buy or sell transaction.
In CFD contracts, the trader is simply trading and speculating on real-time price movements in the underlying market, just as if they were in the real market, and their profits (or losses) are based on the price change between the opening and closing of the position. If you open a long position in a Bitcoin CFD, for example, you are not buying Bitcoin with the hope that the price will rise to sell it at a higher price later. Instead, you are acquiring a contract with the broker where you will gain the difference in the Bitcoin price between the opening and closing (settlement) of the contract.
In other words, CFDs are derivatives that, in this case, have cryptocurrencies as underlying assets. Therefore, they can be traded with leverage, as is the case with Axi.
More information on CFD in: What are CFD (Contracts For Difference)?
Axi has also expanded its offering of stock CFDs
Axi has broadened its range of stock CFDs, allowing trading with stocks from various stock markets. This addition includes a total of 64 stocks from companies in the United States, United Kingdom, and the EU, some of which may serve as indicators of the U.S. economy, such as major tech giants.
The stocks that can be traded on Axi’s platforms include:
- Amazon
- Adidas
- Apple
- Alibaba
- Alphabet
- Boeing
- Coinbase
- Ford
- Exxon
- IBM
- Intel
- Microsoft
Similar to cryptocurrency CFDs, stock CFDs do not grant ownership of the underlying stocks or any rights like purchasing stocks in the spot market. They are purely speculative instruments, ideal for traders who simply want to profit from market fluctuations.
