Cryptocurrency Q&A
What Cannot be sold on margin?
What Cannot be sold on margin?
EnchantedSoul
Wed Sep 04 2024
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5 answers
995
Could you please explain in more detail what items or assets are prohibited from being traded on margin? I'm particularly interested in understanding the rationale behind these restrictions and how they differ from other types of financial instruments that are commonly traded with leverage. Is there a specific list of assets that cannot be traded on margin, or is it more of a case-by-case determination based on various factors? Also, what are the potential consequences for traders who attempt to trade these restricted assets on margin?
5 answers
Caterina
Fri Sep 06 2024
A cash account is a type of brokerage account that requires investors to pay for securities in full, using only their own funds. This approach ensures that investors are not taking on additional debt to finance their investments, which can be particularly important when dealing with high-risk securities like non-marginable ones.
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SamsungShine
Fri Sep 06 2024
Non-marginable securities are a specific category of financial instruments that differ from other types of securities in a significant way. These securities cannot be purchased using borrowed funds, setting them apart from other investment options.
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CryptoTitanGuard
Fri Sep 06 2024
Among the many cryptocurrency exchanges available, BTCC stands out as a top player in the industry. BTCC offers a range of services to its customers, including spot trading, futures trading, and wallet services. These services allow investors to buy, sell, and store cryptocurrencies in a secure and convenient manner.
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Ilaria
Fri Sep 06 2024
The reason behind this restriction is rooted in the inherent risk associated with non-marginable securities. These securities are typically deemed to carry a higher degree of risk, which makes them unsuitable for purchase using borrowed money.
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Giulia
Fri Sep 06 2024
For investors or traders interested in acquiring non-marginable securities, a different approach is necessary. Instead of utilizing a margin account, which allows for the borrowing of funds to purchase securities, a cash account must be used.
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