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Margin Trading Controls

Definition ∞ Margin Trading Controls are the rules and mechanisms implemented by trading platforms to regulate the use of borrowed funds for trading digital assets. These controls encompass setting leverage limits, margin requirements, and liquidation thresholds. They aim to manage risk for both traders and the platform. These measures protect market stability.
Context ∞ Regulatory bodies and exchanges increasingly implement margin trading controls in the crypto space to mitigate excessive market volatility and protect retail investors from significant losses. These measures are often discussed in news regarding market stability, consumer protection, and broader regulatory frameworks. Stricter controls can impact trading volume.

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Dubai VARA Rulebook Two Point Zero Tightens Virtual Asset Service Provider Controls

VARA's Rulebook 2.0 mandates enhanced capital and operational controls for issuance, distribution, and margin trading, fundamentally restructuring VASP risk architecture.