Bitcoinica: Difference between revisions
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Revision as of 03:43, 28 November 2011
An exchange that allows speculation on the Bitcoin to USD (BTC/USD) exchange rate using leverage.
The service was launched on September 8, 2011[1]. At the time leverage offered was 5:1 though on November 19, 2011 the service dropped the default margin requirement level to 2.5:1[2]. The level may raised to 5:1 by placing a request with the company via email.
The service charges no trading fees but instead earns from the trading spread -- similar to how forex trading functions.
Caution is recommended for those not familiar with leverage and/or forex trading.
Funds may be added in the form of either MTGUSD or Bitcoins. Leverage from funds added using bitcoins can purchase an even larger Bitcoin (long) position[3]. Similarly, funds added using USDs can be used to sell (short) bitcoins without already having bitcoins.
The site for the service has a copyright mention referencing an xWaylab, Inc (a Delaware corporation) however the site does not yet provide a terms of service and it is not known from which jurisdiction the service operates. The service does not appear to address regulatory requirements referenced in an alert from the U.S. capital regulator FINRA[4].
External Links
- Bitcoinica web site