Canada bans crypto leverage and margin trading after FTX collapse

[blockman]

I think it's a good move by the Canadian government but, instead of banning it, they should have an education drive that it's highly risky, and their citizens before engaging in it must be aware of the risk.
Because no doubt that there are also traders that makes a lot of money through those and those that don't make money obviously don't know how it works, they've just overheard it from someone that it makes a lot of money but it's not easy.

[Cryptomultiplier]

The Government move is quite considerate. The FTX saga is one big revealed truth that exits in the crypto world and to act before a likely incident occurs again. Leverage and margin trading is such that one enters a consensual debt with his/her broker. If one loses while trading and unlike what FTX turned out, I don't need stress or emphasize on how much indebtedness and downward spiral of the economy that would become.

[crzy]

I think it's a good move by the Canadian government but, instead of banning it, they should have an education drive that it's highly risky, and their citizens before engaging in it must be aware of the risk.
Because no doubt that there are also traders that makes a lot of money through those and those that don't make money obviously don't know how it works, they've just overheard it from someone that it makes a lot of money but it's not easy.

Even if they spread awareness about this one, many will still become more greedy and will still try leverage trading so I think the best solution is really to stop it. There’s a lot of issues on futures trading as well, many got liquidated instantly and maybe this is the way of the government to prevent you from losing that much.

[goaldigger]

I think it's a good move by the Canadian government but, instead of banning it, they should have an education drive that it's highly risky, and their citizens before engaging in it must be aware of the risk.
Because no doubt that there are also traders that makes a lot of money through those and those that don't make money obviously don't know how it works, they've just overheard it from someone that it makes a lot of money but it's not easy.

Even if they spread awareness about this one, many will still become more greedy and will still try leverage trading so I think the best solution is really to stop it. There’s a lot of issues on futures trading as well, many got liquidated instantly and maybe this is the way of the government to prevent you from losing that much.

There’s always a risk in trading but banning it is like telling your people not to get their freedom on choosing where to spend their money. If the government wants to help the traders or anyone who are willing to trade then they should educate them and let them decide if they will still push this through or will stop doing it. Futures are more profitable if you are already familiar with it, so banning that option might prevent you from getting more profit.

[blockman]

I think it's a good move by the Canadian government but, instead of banning it, they should have an education drive that it's highly risky, and their citizens before engaging in it must be aware of the risk.
Because no doubt that there are also traders that makes a lot of money through those and those that don't make money obviously don't know how it works, they've just overheard it from someone that it makes a lot of money but it's not easy.

Even if they spread awareness about this one, many will still become more greedy and will still try leverage trading so I think the best solution is really to stop it. There’s a lot of issues on futures trading as well, many got liquidated instantly and maybe this is the way of the government to prevent you from losing that much.

And that's why they've ended up with the decision to just ban it because they know that many will still do it and when they've already accumulated a lot of loss.
The government will know and they won't like the outcome of it as if their citizens are losing money against the government. The solution of stopping varies on the situation but it's all about their government ruling, if they can step onto this one then that's it no one can stop them.

[Silberman]

I think it's a good move by the Canadian government but, instead of banning it, they should have an education drive that it's highly risky, and their citizens before engaging in it must be aware of the risk.
Because no doubt that there are also traders that makes a lot of money through those and those that don't make money obviously don't know how it works, they've just overheard it from someone that it makes a lot of money but it's not easy.

Even if they spread awareness about this one, many will still become more greedy and will still try leverage trading so I think the best solution is really to stop it. There’s a lot of issues on futures trading as well, many got liquidated instantly and maybe this is the way of the government to prevent you from losing that much.

There’s always a risk in trading but banning it is like telling your people not to get their freedom on choosing where to spend their money. If the government wants to help the traders or anyone who are willing to trade then they should educate them and let them decide if they will still push this through or will stop doing it. Futures are more profitable if you are already familiar with it, so banning that option might prevent you from getting more profit.

However leverage works by borrowing money from the exchange, so in a way you are not actually making use of your own money and instead you are using the money of someone else to increase the exposure you have to the market without investing the necessary capital to do something like this, so in a way Canada is not banning traders from using this form of trading but it is banning exchanges to offer this option, you can still use your money in any way you want, you are just forbidden of using the money of someone else in whatever way you want.