Plus500 has published a sponsored educational article breaking down the four main crypto derivative structures: Contracts for Difference (CFDs), perpetual swaps, crypto options, and standardised crypto futures. The guide outlines key differences in expiry, margin currency, regulatory oversight, and complexity, helping traders choose the right instrument for their jurisdiction and experience level.
Key highlights: Crypto CFDs are available on Plus500’s CFD platform for non-US traders, settled in fiat with no expiry, but not available to UK/Canada retail clients. Perpetual swaps, common on offshore exchanges, use crypto-denominated margin and funding rate mechanisms, carrying additional risk due to regulatory ambiguity and margin volatility. Standardised Bitcoin Futures trade on CME-regulated exchanges under CFTC oversight, accessible to US residents via Plus500’s US platform (Plus500US Financial Services LLC, a registered Futures Commission Merchant). The article also notes that Plus500’s US platform offers Bitcoin Futures and Prediction Markets, while non-US traders can access crypto CFD instruments including Bitcoin, Ethereum, Litecoin, and the Crypto 10 Index.
The educational piece stresses that crypto CFDs are not available to UK retail clients following FCA restrictions on crypto derivatives, and that most perpetual swap platforms lack FCA or ASIC authorization. A risk warning highlights that 80% of retail investor accounts lose money when trading CFDs.
