IG has paid those who go short on Bitcoin (and not only): an interesting move by one of the best known online brokers.
The news certainly did not go unnoticed in the eyes of the crypto-value analysts, and not only. From the end of December, in fact, IG has chosen to pay interest on the short positions that its customers have decided to open on the most traded cryptocurrencies of the moment, such as Bitcoin, Ethereum, Bitcoin Cash e Bitcoin Gold.
The changes - which will affect operations overnight - should have the following impact: for each bearish position on one of the cryptocurrencies we have summarized above, the IG broker (one of the most used by traders who wish to make speculative investments in virtual currencies) will provide its customer with a credit of 0,048% on a daily basis calculated on the basis of the equivalent value, resulting in an annual total of 17,5%. By contrast, the cost of maintaining the open position for the buyer is instead of 0,089% on a daily basis.
Ma why? Did IG decide to make such a move?
According to what has been specified on broker, its goal is to allow traders who foresee in their operational strategies a fall in the prices of digital currencies to be able to earn, in addition to the possible actual fall in the levels of cryptocurrency, also from interest deriving from short positions.
In short, the reason behind this assumption by the broker is intuitively that of wanting to cover at least a part of the costs and risks deriving from the excessive long positions of customers on the cryptocurrency, which require the broker to be able to buy cryptocurrency token on the main exchange worldwide or alternatively future contracts.
A position that at least for the moment does not seem to have been replicated by other brokers, thus leaving it to be understood that IG could be a choice for the moment that cannot be repeated by its competitors, which however do not fail to enrich their cryptographic services with dedicated attention and confidential.
