Do exchange set restriction limit?

[Mrbluntzy]

Just curious to know how exchange treats traders that are making massive profit more frequently. Although I have heard the question in a discussion among circle of friends, not that they believed it's so but they were also curious to know whether the exchange could have hands in making a trader lose their trades or not. Another thing, for someone that is making profit almost all the time, would the exchange get upset about it and decide to put some limit restrictions on the person's account just the way betting sites normally put such restriction if a gambler wins too much?

[Oshosondy]

Just curious to know how exchange treats traders that are making massive profit more frequently. Although I have heard the question in a discussion among circle of friends, not that they believed it's so but they were also curious to know whether the exchange could have hands in making a trader lose their trades or not.

Exchange officials can have hands in many traders losing money. It is among insider trading manipulation. Because of this, many exchanges restrict any of their work to trade or to trade on their exchange. But that is not the fault of the exchange, but just like some bank or government workers can be corrupt.

But exchanges itself can not contribute to traders that are losing. Many of the traders will trade good coins like bitcoin that can not be easy to manipulate, but they are losing.

Impatience, high leverage, lack of money management and improper risk management are the reason many traders are losing.

Another thing, for someone that is making profit almost all the time, would the exchange get upset about it and decide to put some limit restrictions on the person's account just the way betting sites normally put such restriction if a gambler wins too much?

No, the exchanges even like that you are making money and that you continue to trade on their exchange. What they want is for you to continue trading.

[Mrbluntzy]

But exchanges itself can not contribute to traders that are losing. Many of the traders will trade good coins like bitcoin that can be easy to manipulate, but they are losing.

Impatience, high leverage, lack of money management and improper risk management are the reason many traders are losing.

You mean "not easy to manipulate or easy to manipulate? " I usually think that altcoins are the easily manipulated coins and not Bitcoin.

No, the exchanges even like that you are making money and that you continue to trade on their exchange. What they want is for you to continue trading.

Ok, but sometimes could thet not give the trader issues like confiscate the account of the person when the person wants to withdraw their money after winning for a long time?

Something like this https://x.com/Capt_dawud/status/2106090776040001933

[Aanuoluwatofunmi]

Just curious to know how exchange treats traders that are making massive profit more frequently.

Exchange are not concerned about the profit you are making, but the features you are using on their platform to either buy or sale and exchange one coin to the order based on their terms and conditions, the tends to apply their transaction fee based on all these factors that are already stated on their policy, therefore they don't charge by the label of profit we are making.

[Oshosondy]

You mean "not easy to manipulate or easy to manipulate? " I usually think that altcoins are the easily manipulated coins and not Bitcoin.

I mean that is not too easy to manipulate. Thanks for the correction.

Ok, but sometimes could thet not give the trader issues like confiscate the account of the person when the person wants to withdraw their money after winning for a long time?

I think I get what you mean now. Some exchanges do not like people to manipulate the price of small cap coins but which some people are doing. They can even have many different exchange account just to remain unnoticed. They can let the price of small cap coins go in the direction they wanted. I have seen people that their coins are seized because of this kind of manipulations before, but common in one exchange than the other.

[Asiska02]

Just curious to know how exchange treats traders that are making massive profit more frequently. Although I have heard the question in a discussion among circle of friends, not that they believed it's so but they were also curious to know whether the exchange could have hands in making a trader lose their trades or not.

The only way exchange can make traders lose money is through manipulation on the coin the trader is trading. This is not like an in-house casino game that they take full control and can temper with the outcome without the public knowing. Manipulation is on an higher probability when you trade with exchanges that are less popular and has no volume, they can easily manipulate a traders result of trade their favour.

Another thing, for someone that is making profit almost all the time, would the exchange get upset about it and decide to put some limit restrictions on the person's account just the way betting sites normally put such restriction if a gambler wins too much?

I don’t think exchanges do that, when they begin to place restriction on users account, they’re already pushing them away from using the exchange. On the high side, they stand to benefit as people trade more, so they don’t want anything that will limit you from trading with them. When they place limit on account, they are already calling for suspicion of their activities in some form already.

[Charles-Tim]

Manipulation is on an higher probability when you trade with exchanges that are less popular and has no volume, they can easily manipulate a traders result of trade their favour.

It is worth knowing that manipulation can happen on any exchanges. It can even happen on the biggest exchanges as long as the exchanges are listing irrelevant coins. Exchange workers can use some information to manipulate the market, but that is not the only manipulation. The most common form of manipulation is done within traders themselves where the whales will manipulate a coin. The best is that people should avoid those coins that have low marketcap. But there were some that will be manipulated from thousands of dollars to billions of dollars. And within some hours, they will sell the coins back to thousands of dollars where the manipulation began.

[PX-Z]

But exchanges itself can not contribute to traders that are losing. Many of the traders will trade good coins like bitcoin that can be easy to manipulate, but they are losing.

Impatience, high leverage, lack of money management and improper risk management are the reason many traders are losing.

You mean "not easy to manipulate or easy to manipulate? " I usually think that altcoins are the easily manipulated coins and not Bitcoin.

I might agree. Butnaltcoins are generally much easier to manipulate, especially those with low liquidity, or small market caps. Bitcoin can still be manipulated in the short term, like whale or institutional investors selling or what, but the effect is only on the surface and only short period of time. Bitcoin market size and liquidity make price manipulation much more difficult.

[AVE5]

Another thing, for someone that is making profit almost all the time, would the exchange get upset about it and decide to put some limit restrictions on the person's account just the way betting sites normally put such restriction if a gambler wins too much?

No I didn't think that can be possible where exchange would decrease the withdrawal limits of a trader just for making too many transactions or winning too much.
Instead the exchange should even be upgrading the user's withdrawal limits for being a regular user of the platform. So, your regular activities would serve as an advantage for you to enjoy the system better.
I am sure it's going to be unfair and can ruin the reputations of any exchange that's found on making things hard for their customers like that of the withdrawal conditions you mentioned.

[Mrbluntzy]

Ok, but sometimes could thet not give the trader issues like confiscate the account of the person when the person wants to withdraw their money after winning for a long time?

I think I get what you mean now. Some exchanges do not like people to manipulate the price of small cap coins but which some people are doing. They can even have many different exchange account just to remain unnoticed. They can let the price of small cap coins go in the direction they wanted. I have seen people that their coins are seized because of this kind of manipulations before, but common in one exchange than the other.

Ok, thank you, this means that some of the victims with issues like this could actually have been the cause of their problem.

Another thing, for someone that is making profit almost all the time, would the exchange get upset about it and decide to put some limit restrictions on the person's account just the way betting sites normally put such restriction if a gambler wins too much?

I don’t think exchanges do that, when they begin to place restriction on users account, they’re already pushing them away from using the exchange. On the high side, they stand to benefit as people trade more, so they don’t want anything that will limit you from trading with them. When they place limit on account, they are already calling for suspicion of their activities in some form already.

Understood now. Although in some case, like my comment above, there are times which the trader will not be allowed to withdraw and the exchange will start making excuses. So, it's either this or the former.

[Stalker22]

Another thing, for someone that is making profit almost all the time, would the exchange get upset about it and decide to put some limit restrictions on the person's account just the way betting sites normally put such restriction if a gambler wins too much?

I don’t think exchanges do that, when they begin to place restriction on users account, they’re already pushing them away from using the exchange. On the high side, they stand to benefit as people trade more, so they don’t want anything that will limit you from trading with them. When they place limit on account, they are already calling for suspicion of their activities in some form already.

Understood now. Although in some case, like my comment above, there are times which the trader will not be allowed to withdraw and the exchange will start making excuses. So, it's either this or the former.

a legit exchange will only cap your account if you trigger compliance red flags (e.g. suspicious API activity, market manipulation, failed KYC).  They will not cap you if you win fair and square.

As opposed to sportsbooks and casinos exchanges generally dont bet against you.  They have no problem if you make a lot of money.  In fact the higher your volume, the better a customer you are – they get huge fee revenue.

[Gozie51]

Another thing, for someone that is making profit almost all the time, would the exchange get upset about it and decide to put some limit restrictions on the person's account just the way betting sites normally put such restriction if a gambler wins too much?

Well this is not proven though but I believe it is possible to manipulate trader's account for different reasons. But the exchanges that are likely to do that are those unlicensed exchange or lower level exchanges because they are not regulated and no punishment for them. However, those A level exchanges would avoid that because they are strictly monitored and they protect their reputation as they can easily be pulled down by any blogger or huge social media influencer if they cheat on people's money and trade.

I know though that whales can manipulate the market by pump and withdrawal method. They can hype a project to get people's interest and sympathy but after they invest and the coin pump, they might dump their hodling and crash the market.

[AakZaki]

 They have no problem if you make a lot of money.  In fact the higher your volume, the better a customer you are – they get huge fee revenue.

At our local exchange, the customers who often get big profits are usually those with large trading volumes. They even get priority perks, such as dedicated customer service, higher withdrawal limits, and other perks.

So, in my opinion, it doesn't make sense for exchanges to do as OP says. Restricting priority customers can actually harm the exchange itself. Instead, many exchanges are trying to find and retain potential customers who can provide greater trading volume and fees to the exchange.

[Rruchi man]

Just curious to know how exchange treats traders that are making massive profit more frequently.

Exchanges can act a little bit differently from casinos because, unlike the actions of some casinos to start restricting the wins of a gambler who is consistent in his winning, an exchange may decide to act the other way by offering you a contract to become someone who promotes them because it is a good image for an exchange or a broker to have a trader who is known to be consistently successful and profitable in the market using a particular exchange or broker for trading.

[BitMaxz]

Ok, but sometimes could thet not give the trader issues like confiscate the account of the person when the person wants to withdraw their money after winning for a long time?

Something like this https://x.com/Capt_dawud/status/2106090776040001933

~IMG snip~

So you're talking about the limit to those who are actually making profit. I never experienced being locked out or confiscating all my funds after winning a trade, but I experienced in the past some exchanges where my deposit and trades to their exchange were being blocked and I was unable to withdraw. In the end, the exchange itself is a scam and no longer exists.

So better look for a legit exchange because I believe even if you keep making profit or win huge trades, they don't put any limits on you, but you can set your own limit and be able to rest for a while using the feature called "cool off period." I've tested it for just one week; you can't be able to do trades within that week.

I think you are just afraid about some exchange limit if you keep having winning trades or winning huge profits in trading. I have never heard of someone being restricted or getting their account limited just simply by making a profit from trading big or small. If there's an exchange like that, then that is a scam.

[shinratensei_]

You never heard lower tier exchange who freeze their customers because they are winning too much? I've heard about it and plenty of times. They will squeeze your trading with artificial pump from their market makers and if by miracle you're still winning against them, they won't let you withdraw because it's a loss from their company treasury. Nothing you can do about it because they registered themselves offshore with little legal oversight which make legal proceeding difficult and even if you can sue them, you won't win because you're agreeing to their shady term and conditions.

That's why never ever use lower tier shitty exchange if you care about your money and profit. Regardless, a shitty low liquidity exchange don't manipulate directly but through their market makers, they're shitty low liquidity exchange for a reason, a literal "bucket shop".

[hd49728]

Just curious to know how exchange treats traders that are making massive profit more frequently. Although I have heard the question in a discussion among circle of friends, not that they believed it's so but they were also curious to know whether the exchange could have hands in making a trader lose their trades or not. Another thing, for someone that is making profit almost all the time, would the exchange get upset about it and decide to put some limit restrictions on the person's account just the way betting sites normally put such restriction if a gambler wins too much?

I read some posts like this on X about accounts got problems on MEXC exchange but honestly I can not verify such posts, so I only consider them as information, valid or not, I actually don't care.

Because I am aware of risk of centralized exchanges and such posts are not surprising with me.
Reminder: do not keep your money in online accounts.

Another thing that I don't care too much is most traders lose money,  not make massive profit and not make fortune from trading.

[Awaklara]

I don't know, but I have never encountered a case like that. Maybe if an account has issues or is suspected of illegal activity, the exchange could limit or even suspend the account. 
But if the situation is normal, actually the exchange would not lose from the profit generated by the merchant consistently. The exchange would be happy if you keep trading on the platform, as they make profits from your trading activity. So if there is no problem with your account, there should be no reason for the exchange to limit you from trading.

[cryptoaddictchie]

Another thing, for someone that is making profit almost all the time, would the exchange get upset about it and decide to put some limit restrictions on the person's account just the way betting sites normally put such restriction if a gambler wins too much?

I guess a matured exchange or cex doesnt need to do anything like restriction on anyone's account just because he is always winning. A cex can only interfere with so much win if the user might been using some cheat sheet or probably tampering on the tech side but on the other thought thats so rare to see. Manipulation can be done and also be of a reason for potential restriction, if proven guilty but continous winning I think not an issue.

[Dr.Bitcoin_Strange]

I don't know, but I have never encountered a case like that. Maybe if an account has issues or is suspected of illegal activity, the exchange could limit or even suspend the account. 
But if the situation is normal, actually the exchange would not lose from the profit generated by the merchant consistently. The exchange would be happy if you keep trading on the platform, as they make profits from your trading activity. So if there is no problem with your account, there should be no reason for the exchange to limit you from trading.

For a trader to be even making huge profit in trading, they have to use a huge capital and trading with a huge capital gives the exchange a bigger reward in fees. For example, some exchange's charges 0.02% as fee for maker oder while 0.055% fee is charged from takers oder,  so assuming someone is trading with with $20k full margin and filled their entry with market price (taker oder), they will be charged about $22 fee to open and close the trade but that's only if the person doesn't use leverage but using higher leverage also doubles the fee. With the benefits that exchange stands to gain in terms of fee alone, I doubt they will do such, unless it's a new exchange with intentions to scam the trader.