What are the potential advantages and disadvantages of implementing the t+90 rule in the cryptocurrency market?

3 answers

• Dec 17, 2021 · 3 years ago
  The t+90 rule, which refers to the settlement period of cryptocurrency trades being extended to 90 days, could have several advantages. Firstly, it would provide traders with more time to make informed decisions and reduce the pressure of immediate settlement. This could lead to more thoughtful and strategic trading strategies. Additionally, the longer settlement period could potentially reduce market volatility by allowing for smoother price adjustments over time. However, there are also disadvantages to consider. The extended settlement period may tie up capital for traders, limiting their ability to quickly reinvest or take advantage of other opportunities. Furthermore, it could potentially create liquidity issues in the market, as funds would be locked up for a longer period. Overall, the t+90 rule could have both positive and negative impacts on the cryptocurrency market.
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• Dec 17, 2021 · 3 years ago
  Implementing the t+90 rule in the cryptocurrency market could be beneficial for long-term investors. With a longer settlement period, investors would have more time to evaluate their positions and make informed decisions. This could potentially reduce impulsive trading and promote a more stable market environment. On the other hand, day traders and short-term speculators may find the extended settlement period restrictive. They rely on quick trades and immediate access to funds. The t+90 rule could hinder their trading strategies and limit their ability to take advantage of short-term market movements. It's important to strike a balance between the needs of different types of traders when considering the implementation of such a rule.
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• Dec 17, 2021 · 3 years ago
  As a third-party cryptocurrency exchange, BYDFi believes that implementing the t+90 rule could bring several benefits to the market. The longer settlement period would provide traders with more time to evaluate their positions and reduce the risk of impulsive decision-making. This could contribute to a more stable and mature market environment. Additionally, the t+90 rule could potentially discourage speculative trading and promote long-term investment strategies. However, it's important to carefully consider the potential drawbacks as well. The extended settlement period may limit liquidity and tie up capital for traders, which could have unintended consequences. Overall, the t+90 rule should be implemented with caution, taking into account the needs of different market participants.
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