Bitcoin Trading on Margin Halted by Major Chinese Exchanges
- The high leverage offered by Chinese Bitcoin exchanges likely attracted the attention of regulators investigating the market.
The possible ramifications of the recently revealed investigation by the Chinese central bank of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term exchanges are starting to come to light after BTCC, Huobi and OKCoin suddenly stopped offering leveraged trading on margin. Luckily for long term traders and investors, this time the news hasn't hurt the price so far, with the BTC/USD exchange rate staying around the $800 level.
Want to learn more? Bobby Lee, the CEO of BTCC, will be giving the keynote speech about Bitcoin and China at the iFX EXPO in Hong Kong, register now.
Bobby Lee, Co-founder & CEO, BTCC
Talking to us shortly before this publication, Bobby Lee, the CEO of BTCC, told Finance Magnates that the importance of this move needs to be taken in context and not be overstated. He explained that halting leveraged trading could just be a temporary action, one of many more possible tweaks to the service to come, as the exchanges are trying to adapt to the demands of the regulators while nothing official has been decided yet. The real importance here, as he sees it, is that the PBOC is actively engaging with BTCC and other bitcoin exchanges and openly shares this with the Chinese public.
As is commonly accepted in other markets, high leveraged trading can cause Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term to greatly increase with sharp price movements fueled by easy credit rocking the market. As such, this move could actually help the bitcoin market settle down, mature and attract less negative attention for the roller-coaster price changes.
And there is another benefit of the halt of leveraged trading at the Chinese exchanges. We might finally find out if there is truth in the claim that they only report such high trading volumes, far higher than the rest of the world combined, because they offer leveraged trading.
Want to learn more? Bobby Lee, the CEO of BTCC, will be giving the keynote speech about Bitcoin and China at the iFX EXPO in Hong Kong. Register now!
The possible ramifications of the recently revealed investigation by the Chinese central bank of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term exchanges are starting to come to light after BTCC, Huobi and OKCoin suddenly stopped offering leveraged trading on margin. Luckily for long term traders and investors, this time the news hasn't hurt the price so far, with the BTC/USD exchange rate staying around the $800 level.
Want to learn more? Bobby Lee, the CEO of BTCC, will be giving the keynote speech about Bitcoin and China at the iFX EXPO in Hong Kong, register now.
Bobby Lee, Co-founder & CEO, BTCC
Talking to us shortly before this publication, Bobby Lee, the CEO of BTCC, told Finance Magnates that the importance of this move needs to be taken in context and not be overstated. He explained that halting leveraged trading could just be a temporary action, one of many more possible tweaks to the service to come, as the exchanges are trying to adapt to the demands of the regulators while nothing official has been decided yet. The real importance here, as he sees it, is that the PBOC is actively engaging with BTCC and other bitcoin exchanges and openly shares this with the Chinese public.
As is commonly accepted in other markets, high leveraged trading can cause Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term to greatly increase with sharp price movements fueled by easy credit rocking the market. As such, this move could actually help the bitcoin market settle down, mature and attract less negative attention for the roller-coaster price changes.
And there is another benefit of the halt of leveraged trading at the Chinese exchanges. We might finally find out if there is truth in the claim that they only report such high trading volumes, far higher than the rest of the world combined, because they offer leveraged trading.
Want to learn more? Bobby Lee, the CEO of BTCC, will be giving the keynote speech about Bitcoin and China at the iFX EXPO in Hong Kong. Register now!