I have been trying to study the good effect of leverage trading but I have noticed it is a way traders can lose money in just a matter of minutes or hours or days.
Or you can say also the other way around. Why thinking so negatively that the only result will be liquidations. There are also who are gaining in a matter of minutes and hours.
Only because they knew what they are dealing with.
Why are the governments are not taking this serious, the average people that have no enough money will leverage, the rich will not leverage or reduce the leverage to make the liquidation price far, the average will lose to rich traders. It will be good if exchanges are forced to reduce the leverage traders can use, 100x, 125x is too much, 99% of traders that are using it will lose.
You cant force them if they wanted to use a higher leverage with their small capital. They also are betting to gain some in the process. Yes you are right, some should only use an appropriate leverage depends on theit budget. Cause the percentage of being liquidated is kinda high. Well thats their money. Before they start this kind of trading they must have enough knowledge so they wont loss in an instant. Government cant do anything about this. The exchange only offering services hence the blame is still to those people who keep using it.