Margin Trading with cryptocurrency allows users to borrow money against the current funds to trade cryptocurrency on “ margin” to exchange. The users can leverage their existing cryptocurrency or dollars by borrowing funds to increase their buying power that pays interest on the amount borrowed. Leverage tokens are an innovative trading product that emulates the benefits of trading on margin without the risk of liquidation. Whereas the traditional margin trading requires to deposit collateral, leveraged tokens are bought and sold in the same way as spot positions.
Cryptocurrency trading is "not suited for the general public", according to Singapore's central bank.
Cryptocurrency investors in Singapore may have to go through a risk awareness assessment before being allowed to trade. They will also not be able to use credit cards or any form of borrowing to trade cryptocurrencies. These are among the measures proposed by the Monetary Authority of Singapore (MAS) to protect retail consumers. A risk awareness assessment is also being proposed to ensure that retail customers have sufficient knowledge of the risks involved. DPT service providers will not be allowed to offer any monetary or non-monetary incentives to retail customers upon sign-up, or to any person to encourage referrals of its service.

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