Tokyo-based crypto exchange platform Coincheck has halted all new margin trading orders until the end of October 2019.
Cryptocurrency Margin Trading Capped at 4X
In a statement issued on its website at the end of August 2019, the Japanese crypto trading platform announced the suspension of new margin trading orders.
Also, the exchange said upon resumption on October 31, 2019, all pending margin trades will be capped at 4X. This move sees a 20% reduction from the former crypto margin trading cap set at 5X.
Coincheck also released guidelines for customers who already have active trading orders. Those with uncommitted trading orders have until the end of September 2019 to enter into positions to avoid cancelation.
For customers already in open positions, the exchange advised that they check to see if the margin cap reduction adversely affected their trade. A rough translation of an excerpt from the company’s statement reads:
Loss cuts will occur if the margin maintenance rate falls below 50% after changing the magnification….