Hey Friends,
Do any of you trade Forex using Bitcoin? 1broker.com is nice, I also was looking at simplefx. My concern is this article from investopedia, which basically says how you can make profit in your forex trade, but due to price movement of btc you can lose even with a winning trade.
Here is the article: Investopedia
https://www.investopedia.com/articles/forex/081815/benefits-risks-trading-forex-bitcoin.asp#ixzz58HVMSB2q Here is quote from article:
"Now, let’s move on to an example of a forex trade using bitcoin. First, you open a forex trading account with a broker who accepts bitcoins (like AvaTrade, eToro or Liteforex). You then deposit 2 bitcoins from your digital wallet to the forex broker’s digital wallet. Assuming the current bitcoin to U.S. dollar rate is 1 bitcoin = $500, your deposit of 2 bitcoins is equal to $1,000. Now, assume that you want to take a position in British pounds. If the exchange rate is £0.5 = $1, you will receive £500. After some time, the GBP/USD rate changes to 0.45, and you square off your position to get $1,111.11 in your trading account. You have made a tidy 11.11% profit and you are ready to cash out. However, suppose by this time the bitcoin to U.S. dollar rate has changed to 1 bitcoin = $560. When you withdraw your money in bitcoins, you receive ($1,111.11/$560) = 1.984 bitcoins."
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It looks like 1broker bases forex trades in terms of btc, so the btc price is irrelevant as you are paid profits and losses in btc.
Does anyone know if SimpleFX is like this? Or any other good forex brokers that are BTC based
Thanks