Crypto CFDs: bitcoin without a wallet
What you learn in 3 minutesA reader asked: if I never want to hold bitcoin, can I still trade its price? Yes, with a crypto CFD. You agree to exchange the difference in price, so no wallet, no private key and no transfer of coins. What you do get is a contract with its own costs: weekend hours, wider spreads and a daily funding charge for holding overnight. In rand terms, a small position can move R50 on a quiet day and cost R10 or more just to keep open.
0,01 lots of BTCUSD: margin, swap and a weekend move
| Step | Amount | Note |
|---|---|---|
| Position size | 0,01 lots | one lot is usually 1 BTC, so this is 0,01 BTC |
| BTCUSD price | 65 000 | illustrative price in US dollars |
| Notional value | 650 USD | 0,01 × 65 000 = 650 |
| Margin at 20% | 130 USD | 650 × 0,20 = 130; brokers set their own percentage |
| Margin in rand | R2 393,30 | 130 × 18,4100 = 2 393,30 at USD/ZAR 18,4100 |
| Weekend move | 300 USD | price moves from 65 000 to 68 000, a 3 000 point rise |
| Profit on the move | 30 USD | 0,01 × 3 000 = 30 |
| Profit in rand | R552,30 | 30 × 18,4100 = 552,30 |
| Swap for 3 nights | 3 USD | 1 USD per night per 0,01 lot; brokers vary |
| Swap in rand | R55,23 | 3 × 18,4100 = 55,23 |
| Net after swap | R497,07 | 552,30 − 55,23 = 497,07 |
The broker may round the swap, charge a wider spread on weekends, and add commission. The rand conversion uses the broker's USD/ZAR rate, which may differ from 18,4100.
The mistake people make here
People often treat a crypto CFD like a coin in a wallet: they forget that the position is a contract with a daily cost and that the market runs on weekends. A Friday entry held over Saturday and Sunday can collect three nights of swap, which eats into a small move. Check the funding schedule and the weekend spread before you hold. If you would not pay that cost for a coin you own outright, do not pay it for a CFD.Check yourself
You hold 0,02 lots of BTCUSD for 4 nights. Swap is 1 USD per night per 0,01 lot. What is the swap in rand at USD/ZAR 18,4100?
0,02 lots is two units of 0,01. Swap per night = 2 × 1 USD = 2 USD. For 4 nights: 2 × 4 = 8 USD. In rand: 8 × 18,4100 = R147,28.
BTCUSD rises 2 000 points on a 0,01 lot position. What is the profit in rand at USD/ZAR 18,4100?
Profit in USD = 0,01 × 2 000 = 20 USD. In rand: 20 × 18,4100 = R368,20.