Trading Bitcoin With JAFX – IMPORTANT
JAFX is proud to announce that we now offer leveraged trading on a large number of Crypto currency pairs which we directly STP to Bitfinex.
Although this is exciting news and a vast number of JAFX clients are already enjoying trading crypto currencies, it is slightly different than regular pairs and some aspects need to be made clear.
The spread on JAFX for BTCUSD is calculated directly by Bitfinex and is calculated as follows: Bitfinex TOB Spread (Varies) + 0.11% of the value of BTC per side. Example: TOB spread is currently 1ct and the value of BTC is $15,000 = 1ct + ($16.50 X 2) = $33.01 Spread. Make note that as the value of BTC increases, the minimum spread will also increase.
When you place a trade on BTCUSD on JAFX, it is automatically executed on Bitfinex. There are times that when you try and place a trade, that the trade doesn’t seem to go through and just hangs. This is not due to JAFX but the fact that Bitfinex needs time to fill the request.
ONE CLICK TRADING WARNING
We would like to warn clients that if they are using one click trading that it is very easy to open multiple trades if the original trade does not seem to go through. For example if you click on BUY/SELL on one click trading and the trade does not get filled straight away, it will open a trade when it does eventually get filled, even 10min afterwards. So if you were to multiple click the BUY/SELL button, it would result in multiple trades being opened. To avoid this from happening, please use the “New Order” tab in MT4 where it will prevent you from mistakenly opening multiple trades.
When trading BTCUSD on JAFX, clients will experience some kind of positive or negative slippage. For those of you that do not understand how slippage works, please read this link:
Daily FX Slippage Explanation
Bitcoin is an extremely volatile asset where prices can swing a few thousand dollars in a matter of minutes. If you try and close your positions during such a move then you must realise that to close at the price you request, there must be someone on the other side to buy your position from you. When there is not, then your trade will get filled at the next available price. A good link to have open whilst trading is the Bitfinex orderbook where you can see the current pending orders:
We understand your frustration when trading Bitcoin however it is very important that you fully understand the facts when trading. You may feel that JAFX is causing these problems when indeed we are not, it is due to the fact that we STP to Bitfinex. There is no other way that we can offer Bitcoin trading however as we add more Bitcoin liquidity providers, we will aggregate feeds and orders which will reduce the impact of certain issues.