news Japanese Gov’t to Limit Bitcoin Margin Trading Leverage to Just 2x

[Upright 2688]

When it comes to the use of Cryptocurrencies and even that of trading, we always have this of restriction which almost every country tend to impose unto the use of Cryptocurrencies, as Cryptocurrencies is not all that freely used on countries which even attempt on using Crypto

[Yomose 3704]

This will be good, if it is reduced to 2x, that means the rate at which the risk will be will reduce to to only just 2x as the profit can be only that. I will prefer this for trades that likes leverage trading. 

[jamesvince 2389]

I don't believe that is is real news that Japanese government limited leverage trading with maximum two x not possible because leverage trading in forex trading is very high because forex market also based on leverage then how this government can take this unnecessary steps for investors .

[Thekingcallme 1975]

Using leverage as much as x2 does not enable you to achieve strong or large profits, but this also protects you from the big loss and I think that Japan is considering protecting more of the profit

[gloria10yqj 27]

On 2/26/2020 at 7:54 PM, Razan alikac said:

This is very bad news, and this raises my amazement. The Japanese government may have positive motives and a different view of the topic. We will see what Japan thinks soon.

It can be predicted that people will earn in the middle of a much shorter period. It is not clear how long this decision will last. It does not work for them. All small and large will earn profits on the same scale. In my opinion, trading on margin is very risky and this step will be helpful to reduce risk, especially for those without much experience.

[Yomose 3704]

The Japanese government reasons will be valid, they would have noticed most people from their country are losing during leverage trading, the more the leverage the more can be the gain but also the loss. 

[kyoukage01 3181]

9 hours ago, sidalilaroma85 said:

but i think the bitcoin trading will be safer with only 2x, what you think dear @kyoukage01 ?

There were previous users who posted that the 2x leverage was done to protect traders from losing too much, and they do have a point. But I still think that 2x is too little, a 10x or even a 5x would have made more room.

 

As what the article I posted said, traders can use VPN to bypass those restrictions. But since they are doing it to evade their government's restriction, it's just like saying "do it at your own risk".

 

As much as we want to complain about it, there is nothing we can't do about it at this point especially if we are not Japanese citizens. What we can do is determine whether or not news like these will affect BTC's price in some way.

 

[gloria10yqj 27]

On 2/19/2020 at 10:46 AM, palalu said:

wait, I thought we talked about the Japanese government. Why are you talking about the German government? Are you typo?

very what? Why don't you continue your sentence? By the way, which trader do you mean will make a good income? If a pro trader I agree, but if a newbie trader maybe I don't agree because they don't have enough knowledge to do margin trading.

Crypotcurrency is highly volatile and may be a nightmare for professional traders. Many will work with it and leave the market. Because it doesn't work for them. All small and large will earn profits on the same scale.

[Yomose 3704]

On 7/6/2020 at 4:28 PM, sidalilaroma85 said:

Yes there will be a lot of traders witch will leave the trading because of this new decision of reducing the margin from 100x to 2x, so they will convert to forex or index trading witch offer until 800x margin trading, but i think the bitcoin trading will be safer with only 2x, what you think dear @kyoukage01 ?

No matter what, people will still margin trading in Japanese, the entire the legacy the more the risk, that is why they have to reduce it, there are some countries that even ban margin trading, and example is USA. 

[Moaz 7239]

I think limiting the leverage of the bitcoin margin to 2X is a positive thing especially for beginners in the field of trading in cryptocurrencies so that they do not lose all their money in one transaction from trading if it fails in trade

[kyoukage01 3181]

The news may have been bad for the ones affected, but what are they going to do about it matters. For newbie traders, the trading margin decrease may be a way of assuring them that they will not suffer too much loss compared to higher margins. And veteran traders can find other ways to bypass this, since AFAIK the margin decrease was done on Bitcoin only, and other coins may still be available for use.

 

Requesting mods @ayatoslaw @epidemia to please close/lock my topic, it is old now and irrelevant.

 

Thanks to everyone who posted.

 

Edited December 16, 2020 by kyoukage01