Plus500 Shares Decline on Quarterly Report
Global forex and CFD provider Plus500 suffered heavy losses in revenue as reported in their latest quarterly report, prompting traders to send the share price of the company down as much as 44% at one point during recent market activity.
Plus500, sponsors of Spanish football giants Atletico Madrid potentially suffered the losses through their spread betting platform. Although it is unclear what particular segment of the business incurred the losses, it could potentially be from the cryptocurrency trading on offer as traders around the world continue to dabble in the often volatile commodity.
Whilst forex over the years has been a relatively stable product, recent additions to the product offering including stocks, resources and now cryptocurrency means that there are risks involved on both sides of the ledger as uncertainty and volatility can make or break customer accounts.
Additionally, it has been reported that the decrease in revenue is also attributable to European laws which have limited the amount of leverage customers can utilise when trading forex through brokers.