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Duration: 3:54

Instructor:

Contributor: Interactive Brokers

Level: Beginner

Learn how to add Trading Permissions for Cryptocurrencies in Client Portal and how to trade them in TWS.

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Study Notes:

When IBKR launched its cryptocurrency offering via Paxos Trust the following four digital tokens were made available for trading.

  • Bitcoin
  • Bitcoin Cash
  • Ethereum and
  • Litecoin

You can add each cryptocurrency to your watchlist using the following symbols:

  • BTC for Bitcoin
  • BCH for Bitcoin cash
  • ETH for Ethereum and
  • LTC for Litecoin

You will notice a blue Paxos badge anywhere you can view the symbol for each digital coin. This is to remind you that available cryptocurrencies are traded and held with Paxos Trust under an additional customer agreement with them.

Before you can trade these coins, you must first request cryptocurrency trading permission by logging in to Client Portal. In the upper right corner of the screen select the head & shoulders icon. Select Manage Account from the pop-up menu. Under Trading Experience and Permissions locate and select Cryptocurrency trading.

You will be provided with a downloadable agreement from Paxos Trust that you must open and enter your signature. You will need to do the same with an addendum to your customer agreement with Interactive Brokers. Once completed you will likely receive approval within 24-hours and may begin trading.

Entering an order for crypto is no different than creating an order to buy or sell stock.

However, while you may enter buy or sell orders, you cannot short cryptocurrencies on TWS.

Orders can be entered using either crypto or dollar amounts.

When selling an entire long position, you can do so easily using the Position button. More on this shortly.

From your Watchlist click on the cryptocurrency you want to buy to populate the order entry panel. Click the Buy button. Click in the Quantity field. Here you can either enter an amount of the digital currency to buy, or else, and perhaps more conveniently, enter a dollar amount for your order. Entering either value will cause the opposing field to accurately populate.

You may use limit, market or stop orders. In this example I will enter a limit order at a specific price to buy a dollar amount of the chosen crypto unit.

Select your time-in-force. You will see two choices – Minutes or IOC, which stands for Immediate or Cancel. I will select Minutes, and you will see when I click the Submit button, the Order confirmation window states that the time-in-force will lapse if not filled after five minutes.

Review the Order Confirmation window and when satisfied, click the Transmit button to send your order via Paxos Trust.

When you sell crypto, of course you can sell a partial amount. However, note that by clicking the sell button, if you click the Position box, you are asking TWS to submit the entire amount you hold as your order. This will save you from entering an eight-digit value into the input field.

And remember that, once permissioned, you can trade cryptocurrencies in IBKR mobile, Client Portal as well as TWS.

Disclosure: Interactive Brokers

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Supporting documentation for any claims and statistical information will be provided upon request.

Any stock, options or futures symbols displayed are for illustrative purposes only and are not intended to portray recommendations.

Disclosure: Paxos-Virtual currency

IB is not party to any transactions in digital assets and does not custody digital assets on your behalf. Paxos Trust Company (“Paxos”) is your counterparty to any transactions in digital assets, and any positions in digital assets are custodied solely with Paxos and held in an account in your name outside of IB.

Digital assets held with Paxos are not protected by SIPC.

Digital asset trading with Paxos is limited to U.S. residents with individual or joint accounts.

Disclosure: Digital Assets

INTERACTIVE BROKERS LLC IS A MEMBER OF NFA AND IS SUBJECT TO NFA’S REGULATORY OVERSIGHT AND EXAMINATIONS. HOWEVER, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY OVER UNDERLYING OR SPOT VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS.

Trading in digital assets, including cryptocurrencies, is especially risky and is only for individuals with a high risk tolerance and the financial ability to sustain losses. For more information about the risks surrounding the trading of Digital Assets please see the “Disclosure of Risks of Trading Digital Assets“.

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