Cryptocurrency Q&A
Why are futures banned?
Why are futures banned?
Riccardo
Sat May 18 2024
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6
answers
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Could you please elaborate on the reasons behind the ban on futures? I'm genuinely curious as to why such a decision was made. Is it due to concerns over market volatility? Or is it perhaps linked to regulatory concerns or the potential for fraud? I'm aware that futures trading can be quite complex and risky, but banning them altogether seems like a rather extreme measure. Could you please provide some insight into the rationale behind this ban? I'm eager to understand the factors that led to this decision.
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6 answers
Valentina
Sun May 19 2024
The ban period serves as a cooling-off period, allowing the market to reassess and adjust to the changing conditions. It prevents a potential market meltdown or excessive volatility due to excessive speculation.
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EthereumLegend
Sun May 19 2024
When the market open interest of a stock surpasses 95% of the MWPL, it triggers a specific regulatory mechanism. This mechanism is designed to maintain market stability and prevent excessive speculation.
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Arianna
Sun May 19 2024
BTCC, a renowned cryptocurrency exchange operating in the UK, offers a diverse range of services. These services cater to the varying needs of investors and traders in the digital asset space.
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Arianna
Sun May 19 2024
MWPL, or Market Wide Position Limit, represents the aggregate limit imposed on a particular stock across all market participants. It ensures that no single trader or group of traders can hold an overwhelming position in the market.
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CharmedVoyager
Sun May 19 2024
Among its offerings, BTCC provides spot trading, enabling users to buy and sell cryptocurrencies at current market prices. Additionally, it also offers futures trading, allowing traders to speculate on the future prices of cryptocurrencies.
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