Bitcoin
First Global Credit: Encouraging Bitcoiners to Become Traders
Daniel Dob | Jan 30, 2016 | 08:00
While Bitcoin represents a great currency for trading, there aren’t too many platforms that accept the digital currency as market trading collateral. A newly-formed company known by the name of First Global Credit Private Trading Group is aiming to change this.
Also read: China’s Growing Number of Internet-Connected Users is Positive for Bitcoin
First Global Credit Private Trading Group Is Looking for Talented Traders
According to recent reports, the company has begun a search for capable traders. Those who wish to get access to a professional grade currency and stock trading account, which will be part-subsidized by the company, will have to submit an application. Traders do not require any particular training or studies, but to join the platform, potential traders will have to come up with a strategy statement of roughly 750 words, outlining how they wish to use their bitcoin collateral to make profit while trading currency, stocks and ETFs on the platform.
Once a trader is awarded the account, they’ll have to deposit one bitcoin into it, which will be doubled up by the firm. The two bitcoin collateral will allow traders to work with up to 20 bitcoins worth of capital, which is based on the 10-times leverage principle. Traders are also free to convert their collateral into fiat and vice versa, to avoid issues caused by volatility. Once successful trades are made, the profit will be split between the trader (75%), and the firm (25%).
To help put things better into perspective, The Bitcoinist held an exclusive interview with the CEO of First Global Credit Private Trading Group.
What was the intention when creating a private trading group using bitcoin as market collateral?
We’ve created the private trading group for two reasons. First, we are looking to find profitable traders so we can make money for First Global Credit. But it is also my hope that this will attract talent that would never get the chance to develop a career in trading. People with innate talent who would never get the opportunity to become market traders because they lack the contacts, formal education or they just live in an out of the way place.
Considering bitcoin’s volatility and lack of centralization, wouldn’t it be a bad collateral option?
This is absolutely the case for most companies. But First Global benefits from my background and that of my development team. We have developed hedging systems for complex, volatile commodity trading and have adapted those skills to another market type, bitcoin.
What types of investments will be made by traders? Solely bitcoin?
We accept the bitcoin as collateral and loan the trader fiat currency to put the trade into the market. They have a choice of 200 NYCE or NASDAQ stocks to trade, about 10 LSE stocks and about two dozen ETFs. They can go long or short the stocks as they wish. When the trader makes a profit on the stock and it is sold, the profits are swept into their account in bitcoins.
It’s also worth adding that due to the Switch Service outlined above, traders can use trade via both fiat and bitcoin, thus allowing them to profit with both currencies.
What do you think about the First Global Credit Private Trading Group initiative? Will it encourage more people to look forward towards a career in trading? Let us know your thoughts in the comment section below!
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