Bitcoin, Forex, CFDs … Beware of original investments!

“However, the market in this currency is not regulated and its variations are often irrational,” warns Julien Maldonato, consulting partner at Deloitte. As with the other products mentioned here, cryptocurrency must therefore be managed with caution, for a small part of its assets.

CFDs (contracts for difference)

I earn : linked to the leverage used (up to 200 times).
Potential loss: 100% of the capital, sometimes more.
Holding period: from a few hours to a few months.
Product that shows a potential for decreasing earnings for 2018.
Under the fire of criticism and increased regulatory scrutiny, promoters of CFDs (or “contracts for difference”), such as CMC Markets, FXCM, IG or Saxo Bank, are playing it safe. “Last summer, at the height of tensions between the United States and North Korea, we temporarily halved the authorized leverage effects,” assures Gilles Monat, CEO of Saxo Bank. History to prevent savers from losing their shirts too quickly. In the event of a large price shift, down if you bet up, or up if you bet down, your account could end up in “margin call” and your position could be cut.
Taxation. Income is subject to 17.2% of social security contributions, plus income tax, via a flat-rate levy of 12.8%. On a global option, they can be taxed on the income tax scale.

Leveraged Exchange Products

I earn : linked to the leverage used (from 2 to 15 times the stake).
Potential loss: 100% equity.
Holding period: from a few days to a few weeks.
Product showing stable earning potential for 2018.
Listed on Euronext and, as such, suitable for any securities account, these products require constant attention. Starting with the turbos, which have the particularity of being equipped with a deactivating barrier, which in the event of crossing drops its value to zero. “The stronger the leverage, the shorter the holding period should be, from a few hours to a few days,” says Sébastien David, head of French equity market products at Société Générale (SG CIB). As regards the warrants, issued from three to twenty-four months, their value fluctuates based on the price of the underlying, but also on the time remaining before maturity. The simplest of these products remains the leveraged certificates. Therefore, a 40 x 10 CAC certificate will earn 10% if the index appreciates by a modest 1% during the session. But it will lose 10% if this same index drops by just 1%. To sleep peacefully, it’s best to adjust your position at the end of the day.
Taxation. That of CFDs.

Currencies in the Forex market

I earn : linked to the leverage used (up to 200 times).
Potential loss: 100% equity.
Holding period: from a few hours to a few days.
Product showing stable earning potential for 2018.
Euro-dollar, pound-dollar, dollar-yen or even euro-pound: there is no shortage of currency pairs for anyone who wants to venture into the gigantic world currency market. But be careful, because the establishments that allow it, often the same specialized in CFDs, sometimes associate them with a leverage effect of up to 200. Too high: in practice it is better to limit it to a multiple of 5 to 10, and maintain their position only for a few days at the most. The prices of currencies can in fact change suddenly, even if they are currencies such as the euro (+ 12% in 2017 against the dollar) or the British pound (+ 7% against the dollar). Before investing, also refer to the black list of unscrupulous intermediaries, kept updated on its website by the Autorité des marchés financiers. He still had a hundred names lately.
Taxation. That of CFDs.

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Bitcoin and other cryptocurrencies

I earn : + 900% for bitcoin.
Potential loss: 100% equity.
Holding period: from a few days to a few months.
Product that shows a potential for decreasing earnings for 2018.
Bitcoin, but also Ripple, Dash or Ethereum: there are countless cryptocurrencies, these currencies generated by an algorithm, whose exchanges can be traced through an encrypted and decentralized ledger. And if their potential payoff is maximum, so is the risk. The price of bitcoin can therefore fluctuate by 30% in less than a week. As for intermediaries, they are often unreliable. “Some platforms operate from Cyprus or Estonia, with less strict regulations”, explains Julien Maldonato. You therefore risk getting your bitcoins stolen, stored in electronic wallets (the “wallets”). Or of being scammed, as during the suspected failure of MtGox in 2014. As recalled by the AMF, no guarantee fund will then cover the loss. The only way to protect yourself from this danger: to go through a tracker, replicating the course of the currency.
Taxation. If you invest directly, the capital gains, falling into the category of non-commercial profits (BNC), are subject to the social tax of 17.2%, therefore at the income tax scale.


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Aline Legrand

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