Margin trading allows you to borrow funds from the exchange to increase your trading position. However, not all trading pairs are eligible for this feature. Here's why:
Market Volatility: Some cryptocurrencies are highly volatile, meaning their prices can fluctuate rapidly. This makes them riskier for margin trading, as a sudden price drop could lead to significant losses.
Liquidity: A trading pair needs to have sufficient liquidity (buyers and sellers) to support margin trading. If there isn't enough liquidity, it can be difficult to borrow funds or close your position without incurring large losses.
Regulatory Restrictions: In some jurisdictions, there may be regulations or restrictions that limit the types of cryptocurrencies available for margin trading. These restrictions can vary depending on the country or region.
Exchange Policies: Each cryptocurrency exchange has its own policies and risk management procedures. They may choose to exclude certain trading pairs from margin trading based on their own assessment of risk.
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