Bitcoin Crypto Currency Online Trading - BTCUSD Symbol
Bitcoin is a popular cryptocurrency traded in online financial markets. Its price is set and shown in US dollars at any time. You can buy or sell Bitcoin in person using a wallet. Or use the common way: trade Bitcoin online as contracts.
In buying and selling Bitcoin bitcoin online trading - a trader has to look for an online Bitcoin Broker, the Bitcoin broker then will provide you access to trading Bitcoin online. The Bitcoin that will be traded will be traded as a contract: once a trader buys a contract of Bitcoin, the BTCUSD trader then will make a profit or loss depending on the direction that the price of Bitcoin will move in. If a trader buys a contract of Bitcoin and the prices of Bitcoin move up then the bitcoin trader will have made profit from the price difference and they can close out their buy trade of the Bitcoin contract and book their profits. However, if a trader buys one contract of Bitcoin and the price then moves downward then the trader will accrue a loss once they close out their open contract at a lower price.
Bitcoin contracts trade online just like shares or stocks. Investors gain when values rise. They lose if prices fall.
Bitcoin Contracts
In online Bitcoin trading, each contract equals one Bitcoin unit. Traders buy or sell contracts worth one Bitcoin each.
The prices of Bitcoin will be quoted by the online Bitcoin broker and a btcusd trader can buy/sell Bitcoin contracts at the current quoted price. The current bitcoin price quoted is the prevailing Bitcoin market price.
In online Crypto BTCUSD is traded and represented by the format - BTC
Bitcoin is quoted against the US dollar, so you'll see the trading symbol as BTC/USD. This shows the price of bitcoin in US dollars.
Price of Bitcoin - Bitcoin Price Quotes
The Price of Bitcoin is quoted as show above using the Bid and Ask Price
- Bid is the price at which you buy
- Sell is the price at which you sell
The designated trading ticker for Bitcoin is BTCUSD, though it's labelled as 'Bitcoin' in the preceding example.
The current price quote of Bitcoin is 5530.990
This implies that a btc/usd trader intending to purchase one contract of Bitcoin would execute the trade at the price of 5530.990.
Bitcoin is quoted using 3 decimal digits in the case above the last two decimal digits are .990
The last decimal figure is utilized to determine the profits and losses of trades, known as 1 pip or one point. When trading Bitcoin, one pip corresponds to a movement of $1.
If bitcoin price rises from $5530.990 to $5531.990, that's a $1 move. Bitcoin trades in 1-unit contracts, so this equals $1 profit.
A shift from $5530.990 to $5531.990 signifies a movement of 1000 decimal points, meaning each decimal point represents a profit of $0.001 for every pip (0.001 price change).
Opening a Bitcoin Crypto Currency Chart
To access a Bitcoin trading chart, a trader can open it from the Bitcoin trading platform, specifically the MT5 platform, via the "File menu" as illustrated below. Subsequently, select the New Chart option.
Opening Bitcoin Chart in MT5 Software Platform
A trader can locate and select Bitcoin - BTCUSD by navigating to the "Cryptocurrencies" category after selecting the "New Chart" function.
Opening BTCUSD Chart on MetaTrader 5 Software
More Tutorials & Topics:
- The ADX Technical Indicator for BTC/USD Analysis
- Learning MetaTrader 5 Software for Trading Effectiveness
- Analyzing BTC/USD chart data in MT5? Here's how to read the data window.
- Bitcoin Account Login for MetaTrader 4
- Average True Range (ATR): A Key BTC/USD Technical Indicator Analysis
