And this is why drops are intensified, people buying on the margin and then getting liquidated when they don't have sufficient capital to cover their positions. I am not sure why they think this is/was a smart idea, but I doubt people will learn anything from it.
also
FCA now mitigate such risks for you
https://coingeek.com/digital-currency-derivatives-ban-now-in-effect-in-uk/Eventually that is going to happen in every jurisdiction as people's lives are on the line here. Obviously there has been a clearly distorted narrative (the get rich quick or the when lambo for example) that brought onboard a few rich kids and grannies who are not capable to handle the bitcoin beast.
I, for once, agree with the FCA.
There are idiots all over the place whatever the asset. TANSTAAFL for one thing. People who think it is a get rich quick scheme haven't been following along. :-) I am usually of the opinion that people should be free to make their own decisions, even dumb ones, but without knowledge, derivatives are like handing teenagers a case of whiskey and the car keys. Someone is going to get hurt and it is irresponsible to give them both.
Look at Archegos, Credit Suisse, DB, NMR, UBS, GS, MS etc. The hedge fund was supposedly knowledgable and yet wasn't. These prime brokerages were supposedly smart investment banks, and yet weren't. Where was upper level management at these banks? Where were the risk managers? Where were the automated systems that flag things? Anyone looking for a quick buck without understanding what is going on is bound to lose money eventually. Kind of like Macau, Las Vegas, Monte Carlo etc. If you are innumerate, one shouldn't gamble unless it is purely for fun like a movie ticket that you have a good chance of losing.
