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FTX moves to curb highest-risk trades in cryptocurrency
SECTIONS
Last Updated: Jul 26, 2021, 08:51 AM IST
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Synopsis
The move by the exchange, FTX, would reduce the size of the bets that investors can make by lowering the amount of leverage it offers to 20 times from 101 times. Leverage multiplies the traders’ chance for not only profit, but also loss.
Reuters
Global platforms such as FTX allow traders to borrow big when betting on price fluctuations traders do not buy and sell cryptocurrencies but instead predict where prices in the underlying assets will head
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By Ephrat Livni and Eric Lipton
A popular cryptocurrency exchange announced Sunday that it was curbing a type of high-risk trading that has been blamed in part for sharp fluctuations in the value of Bitcoin and the casinolike atmosphere on such platforms globally.
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