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No - it is the gains that are taxed to pay for the losses. Traders who won will have slightly smaller rewards. This is actually better solution than the traditi
by zby 8y ago
No - it is the gains that are taxed to pay for the losses. Traders who won will have slightly smaller rewards. This is actually better solution than the traditional way of forcing the losers to cover the whole loss. When you make a position there you make slightly different bet then on traditional exchanges - but the system is more stable this way.
- officialchicken 8y agoNo - the traders do not get a bonus or discount when the exchange profits, only the potential to be penalized. And the exchange is privately owned. Whether or not that is a better solution than well-regulated markets is a symptom. And arguably less stable - who will open an account with them now unless they offer even more leverage and re-create these same conditions?
- zby 8y agoThe traders get a discount when they lose and the margin call does not cover their loss. They can just walk away - while traditionally they would have to cover it all.