Crypto Exchange Self-Regulation Kicks In as Regulators Start to Kick

[RSRS]

It appears that the crypto industry is increasingly turning to self-regulation as the rope of regulators threatens to tighten firmly around it - and the trend hasn't missed a major decentralized exchange either.
Major crypto derivatives exchange FTX CEO Sam Bankman-Fried announced that the exchange decided to limit the amount of margin-trading debt traders can wager from 100 times leverage to 20 times.

"An effective margin system is integral to an efficient economic system," he said, following that up with: "There are limits to everything, though."

Bankman-Fried went on to say that margin systems must have liquidations as a backup, but with a goal to "do so rarely." At FTX, he says, "way less than a percent of volume comes from margin calls," which is in contrast to some platforms that "are sometimes > 5%, and some which removed data because it looked bad."


Liquidations in the past 24 hours:


Source: bybt.com, 09:49 UTC
Leveraged trading refers to borrowing funds so that you can take a larger position than you would be able to with your existing funds so that you can potentially generate a higher profit. However, while margin trading enables traders to amplify their returns, it can also lead to increased losses and liquidations, which is why experienced traders tend to advise newcomers to stay away from leveraged trading.

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