Amidst the pessimism surrounding Brexit, UK Forex Giant introduces CryptoMajor. CryptoMajor is a basket that contains five major cryptocurrencies – Bitcoin, Litecoin, Ether, XRP, and Bitcoin Cash. The target is to make CryptoMajor a single unit which will allow multiple cryptocurrencies to be used at the same time, without managing them separately. CryptoMajor is unique in terms of giving equal weighting to each coin and thus minimizes the exposure to one particular cryptocurrency.
According to the CEO of FXCM, Brendan Callan, the basket is an ideal risk management tool for the retail traders. He stated that CryptoMajor is a great opportunity for traders who are just getting started. He says,
“CryptoMajor, therefore, streamlines the trading process and protects our customers from unanticipated and adverse market movements. It is a great opportunity for our customers who are looking to move into Crypto trading but don’t want to risk too much overexposure.”
As these five major cryptocurrencies are compiled in one basket, he also suggests that this initiative will free the users from the hassles of constantly monitoring the markets.
However, the announcement arrived an unpleasant day when UK Pounds dropped by 0.7% against the US dollars. This raised concerns to many. FXCM did not reveal the base currency for the CryptoMajor basket during the announcement. It is speculated that FXCM would likely use the US dollar as the base currency for the CryptoMajor judging by the overall presence of the currency.
Keeping aside the Brexit tensions, it is likely that CryptoMajor may prove to be an attractive alternative for CFD traders who are planning to dodge the Brexit-hit markets.