This site uses cookies. Browsing the site, you agree to the use of cookies. If you need more information, please visit the Cookies Policy page
Subscribe
Прямой эфир
Cryptocurrencies: 3442 / Markets: 20680
Market Cap: $ 281 131 478 222 / 24h Vol: $ 161 784 083 847 / BTC Dominance: 62.8127%

Н News

It’s No 100x, But It’ll Do: Coinbase Pro Re-Releases 3x Leverage

528_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy83YTE3ODc1ZjVhZmJhZWQzNmNhNGE2MjQ4YWY2NGRjNC5qcGc=.jpg

Coinbase Pro has launched 3x margin trading once again after removing the feature several years ago.

Coinbase Pro, the cryptocurrency trading platform arm of U.S.-based exchange Coinbase, has unveiled margin trading for select customers. 

Active Coinbase Pro users in 23 states can now trade with leverage on Coinbase Pro, according to the company’s blog announcement on Feb. 12. 

Coinbase Pro hosts a modest 3x leverage limit, whereas exchanges such as BitMEX and Binance offer 100x leverage and up

What is margin trading?

A product typically seen in professional asset trading circles, margin trading essentially involves borrowing funds with which to trade on a per-trade basis. 

Coinbase said its Pro exchange now hosts 3x leverage, so users with one Bitcoin (BTC) can enter trades with three Bitcoin (two borrowed BTC), resulting in amplified gains or losses, depending on the trade. 

Who can use Margin?

Coinbase noted the feature is open for retail and institutional players. The exchange has restricted retail participation to residents of 23 states. Retail customers also must have account records showing regular activity on the platform to qualify for margin. 

On the institutional side, margin availability exists in 43 states and nine other countries. 

Why did Coinbase Pro remove margin years ago? 

Rebranded from GDAX to Coinbase Pro in 2018, Coinbase’s trading platform touted 3x margin trading capabilities for Bitcoin, Litecoin and Ethereum back in 2017, as shown in a how-to tweet from the company.

The platform removed the feature, however, in the months following an Ethereum flash crash in June 2017, which dropped the asset from $317 down to $0.10 in an instant. The Commodity Futures Trading Commission, or CFTC, also investigated the trading platform following the crash. 

Cointelegraph reached out to Coinbase for additional details but received no response as of press time. This article will be updated accordingly should a response come in.

Source

comments powered by Disqus