Liteforex switches crypto trading to close-only mode
It seems that the lineup of forex brokers planning to limit crypto trading due to overexposure to recent volatility is increasing. One of the new additions to this broker group is the LiteForex retail forex platform. In a memo to customers, the company stated that it has temporarily suspended the provision of cryptocurrency CFDs until further notice to protect customers from adverse market fluctuations.
LiteForex will be trading cryptocurrency pairs in closed-only mode starting today due to "technical issues from liquidity providers". Check out their profile ratings at Wikifx.
This means that traders are not allowed to open new trades in cryptocurrencies. However, it is not clear if the company plans to liquidate the customer's open position at any time.
"Our tech experts activate a more stable source of liquidity and cryptocurrencies will soon start trading normally," continues LiteForex.
The move to limit cryptocurrency transactions followed the sale of Bitcoin on Wednesday, with a flash crash eradicating billions of dollars in market capitalization. The largest cryptocurrency by market value temporarily fell by about 18% a day ago.
LiteForex was founded in 2005 and is based in Cyprus, where its Liteforex (Europe) Ltd brand is regulated by CySEC. It also maintains an offshore branch in the Marshall Islands and is subject to a more flexible and relaxed regulatory system.
In addition to Bitcoin and major cryptocurrencies, LiteForex has recently expanded its cryptocurrency offering amid rising client demand, equating to other cryptocurrencies in the industry and offering more than 20 cryptocurrency pairs in its product range.
Added, an account that uses cryptocurrencies. Accepted cryptocurrencies include Bitcoin, Bitcoin Gold, Bitcoin Cash, Litecoin, Monero, and Ethereum, adjusted to reduce exposure to cryptocurrencies. Current market turmoil can quickly impact open trades, cause stop-outs, and close accounts as the market changes.
Therefore, the broker has already set up plans to protect itself and its clients from sudden market changes that could instantly clear the balance of their accounts.