Do exchange set restriction limit?

[Zaguru12]

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.

While you’re right about the fees, it’s not directly true that the use of leverage doubles the fee but rather it depends on the leverage multiplier due to the fact that it is the position size that determines the fee.

If you use 5x leverage for a $20k capital you would have a position size of $100k and that will be multiplied by 0.055% to give a $55 open fee.

An increase in the leverage is a direct multiplier.

[Antotena]

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 don't like to engage in certain discussions that doesn't have evidence but I have seen countless traders fight with centralized exchanges on how their balance disappeared but like I said, there are no proof that they did and even if there is, the centralized exchange have the final says because they can make evidence disappear. There are also evidence that exchange refused to allow people to make withdrawals because of they find out that they are responsible for wash trading but nothing is giving to the public to verify.

The exchanges doesn't have the power to make traders lose money but they can do insider trading causing market to dump and hit many liquidations which directly impact their trading fees. Some of them can't be trusted, they do this things underground and keep quiet like nothing even happened. There was a time Binance was fought for massive liquidation one time that many traders loss all and everything went quiet.

[Doan9269]

Each exchange should be treated separately and that is why you cannot apply the terms and condition of a particular exchange for the other, we have to go through what they requested of us to do and know their policy, we can't be using an exchange without knowing what they wanted from us, this is where many users get familiar with the use of an exchange before they begin to engage with their services for proper familiarity.

Doing this will help us to know whether there is a particular restriction they have set over anything you want use as part of their services or not.

[ColdLava40]

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?

Exchanges acta as brokers for trading crypto.

They create their own liquidity pools that every trader can participate in the market through. Yes they do manipulate trades some times but most especially during high volatile sessions.

Exchanges trading platforms are different from gambling sites.

there is no restrictions from them as to how much you can trade or how much you can withdraw. As long as you do not break their trading rules. But I know of some brokers that do not pay traders and it's different when using good reputable exchanges to trade.

[Hamza2424]

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?

Bro, spot exchanges don't care if you win or lose, they take their cut on every trade regardless of your PNL. It's not the same as with bookmakers, because with them, when you win, they lose.

Maybe on some platforms where brokers are the ones trading against you, but normally an exchange like Binance or Coinbase don't care if you lose or win. But when we talk about market makers, that's a different story. Because market makers can manipulate the market to go against you, but not as individuals. They try to manipulate the whole market so they can win against a large lump sum of leveraged amount.

[Obari]

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 don't think there are restrictions and how do gambling site put these restrictions or make a player loss if his winning more because I don't think it's possible for sport betting gamblers even if it might be possible for those of the that play casino games and my focus is that, for something that is done globally, I don't think the result can be easily thwarted and in the case of trading, I don't think the broker can do anything about it when someone is winning else, those major names we hear about in the trading industry wouldn't have been heard.

[Alphakilo]

Each exchange should be treated separately and that is why you cannot apply the terms and condition of a particular exchange for the other, we have to go through what they requested of us to do and know their policy, we can't be using an exchange without knowing what they wanted from us, this is where many users get familiar with the use of an exchange before they begin to engage with their services for proper familiarity.

Doing this will help us to know whether there is a particular restriction they have set over anything you want use as part of their services or not.

This about says it all for me because I believe every exchange has its own rules and while they are quite different from regular casinos that can limit or freeze accounts of steady winners, exchanges make profits from legit profit that traders make and even go as far to promote them to VIP status because they make the exchange look good.

Unless the trader is suspected of manipulating the system then there's really nothing to fear about an exchange restrictions on a profitable traders account unless such a trader uses a low grade exchange that can do as they please without proper license and regulations governing them and that can come in various ways including platform lag during high volatile seasons among others.

[osasshem]

Though, we won't literally say that exchanges exhibits such actions because there is possibly no proof as the case maybe, but that doesn't mean it is not possible, because they are the ones behind the scenes and are in watch of the activities going on in the platform. Gambling is more obvious to know than trading. I say this because of he availability of different trading views across the crypto trading market.

[Bitcoin_Arena]

Let me put it this way.

Any genuine exchange does not give a damn about how much you win or lose. What they are mostly happy about is your trading volume, and that is where they mostly earn from, and maybe clients keeping the money in the exchange rather than taking it out.

In a genuine exchange, you are always trading against another trader or traders and not against the exchange like it is with casinos.

Note how I have emphasized the word "genuine."

[savetheFORUM]

What I know is that the type of trade that is heavily restricted or frowned upon is the arbitrage trading only. Trading exchanges are not like gambling sites where a gambling site uses their own bankroll for operating their business mainly, while a trading exchanges are only earning a commission when someone trades at them.

Restriction of account does occur though even on gambling sites. They are mainly the sports bettors or also those that does an arbitrage type of bet are the ones that are affected with it. Never heard of that that an exchange can mess up with a trader and make them lose but this is high likely in a gambling business. Often times they are accused for rigging their games. But, this may also come from those unprofessional gambling losers.

[Barikui1]

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 personally don't think that an exchange can play a role in the outcome of a trade, a trader took, because if it's Bitcoin the trader is trading, it price cannot be manipulated, and even in most alt coin too.

But as for the case of putting a restriction on a users account, just because he is always on the winning end, so they decides to restrict his account, I honestly don't think it's necessary, the exchange would not do that because they are not paying from their own pocket like the casino's, they are only taking money from the losers to pay the winners, so an exchange is run differently to the casino that is more of a personal control business, than an exchange were more people are involved, for auditing and other stuff.

[Dr.Bitcoin_Strange]

While you’re right about the fees, it’s not directly true that the use of leverage doubles the fee but rather it depends on the leverage multiplier due to the fact that it is the position size that determines the fee.

If you use 5x leverage for a $20k capital you would have a position size of $100k and that will be multiplied by 0.055% to give a $55 open fee.

An increase in the leverage is a direct multiplier.

That's what I meant by "double of the fee which I previously stated" I get your point, maybe I should have said "it increases the fee" but if you also check it out, you will see that that's what I meant.  Initially I only mentioned $20k without leverage and the total fee for open and close trades would be $22+ but assuming a trader used 2x leverage for the $20k, that would be $40k, multiplying it by 0.055% is $22 fee to open the trade (which is double of the $11 I previously mentioned) and $22 to close it.

[traderethereum]

I don't think exchanges get upset and put some limit restrictions. If they do that, we will see many complains from traders especially those who making profit almost all the time. They may thinks that is part of the marketing because those profitable traders will share their affiliate links to social media to invite people join them. Exchanges will get more members to their place and their profits will be bigger.

We don't know how exchanges treats traders and just guess but they will not hate profitable traders. They will have many traders lose and that gives them profit also.

[TheUltraElite]

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.

I think that is more of a conspiracy theory than a reality. Also people mostly lose in trading and rarely make profits from the trades they are doing except a select few.

Hence dont think that the trader would need to do someone insider, because the traders themselves make themselves rekt before they know it.

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?

Profiting all the time makes the trader rarest of rare cases because trading is not so profitable or easily done. Also casinos dont put restrictions on gamblers because of same reasons, those who continue to play will lose money eventually.

[fighter2627]

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?

In my opinion, they probably wouldn't restrict an account of their traders if they didn't see anything suspicious about the traders themselves. Meaning, it's not about the profit that the trader often gets but due to there are other traders who use tools to always get profit like that.

Of course, when that happens, it seems like the former is doing something suspicious or we can say there is fraud, that could be the scenario. So I don't think that they are suddenly
restricted by the exchange due to they always make money.

[YOSHIE]

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

As far as I know, exchanges do not set limits on trading profits for traders or investors, if I'm not mistaken, every individual who enters a crypto exchange and makes their trades is required to manage risk independently.

This means that traders who want to carry out activities in the crypto market gain and loss limits are actually set by themselves, not by the exchange, that is, every exchange always uses the Limit Order or Stop-Limit Order feature. This feature is available on almost all crypto trader platforms in the world. the whole world, like the Binance platform that people generally know, they also use the features I mentioned.

In short, the discussion of the profits they get as often as possible when carrying out pure trading activities is completely dependent on price movements in the crypto market they use.

[rbynxx]

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?

The question is, is that or those user/s exist here in the forum? If an exchange do that, do you think users will still use it? I don't think some huge or known exchange/s will do that so obvious unless that user isn't so aware of his trades. I guess so or worst you can be tagged as well if you're deem suspicious on their eyes. I've never seen such case unless there's clearly a manipulation on the trader's part to keep him winning.

[Cryptmuster]

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?

It seems to me that it’s almost impossible for a trader to make only profitable trades all the time. No matter how good a trader is, they will always have some losses. And if as you say, there are traders who only make money and withdraw it, I think that could definitely raise some suspicions at the exchange. They could freeze the trader’s account or require verification if they haven’t completed it yet.

But can an exchange somehow influence a trader in a way that causes them to make losses? I mean, the exchange can see all the open orders, so it’s possible that an exchange could engage in some kind of manipulation, but I think things are a little different. I don’t think the manipulation comes directly from the exchange itself, but rather happens on a much higher level.

[Zigabel]

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?

Contrarily, Exchanges wants you to even make profits so they can get their commissions and take their own share from the profits, i know they also make profits when you loose, winning is more like a two way thing for them, either you win or loose, they will still make profits from their commissions they deduct, as it concerns trade manipulations, it is very possible the exchange can have a hand in that but such is very limited, the likes of Bitcoin and other top Altcoins aren't easily manipulated, so to be safe, its always best to trade Bitcoin or the few top Altcoins that is close to Bitcoin. Now it is very important to know that not all exchanges can be trusted enough to trade on them, there are other exchanges that has got solid reputation that has been proven, they can be trusted but for those who don't, please its better not to become a victim of circumstance at the end of the day.

I don't think there's any reason for an exchange to get upset at a trader for making genuine profits consistently, for them there are a lot of advantages to having a genuine consistent profitable trader on their platform, it will help their PR and also help them get to build their trust even more, when people gets to see and observe that they are actually paying, people will wan to use their services. so i don't think there will be limit to your profitability but there can be for your Deposits and and maybe the amount you can withdraw at a time depending on your level of KYC for some exchanges.