Starting today, Coinbase Pro customers in 23 U.S. states can access up to 3x leverage on USD-quoted books.
Today we’re excited to announce the availability of margin trading for eligible Coinbase Pro customers. Margin has been one of our most requested features, and today we’re delivering an experience that we’re confident our customers will find intuitive, yet highly sophisticated and functional.
Trading crypto on margin (or leverage) can amplify the impact of your trades by allowing you to borrow additional funds. If deployed as part of a responsible trading strategy, margin trading doesn’t just increase your position in a specific trade, but can also help diversify your portfolio, allowing you to hedge or arbitrage across multiple positions without depositing additional capital.
Over the next year we plan to expand access to the product to customers located in more regions. We will also be expanding the product to include more types of collateral assets.
Trade safely and effectively
Designed for advanced traders, margin trading provides access to trade on leverage on the deepest, and most trusted pool of crypto liquidity. No other crypto exchange has Coinbase’s track record of compliance, security, reliability and deep liquidity, meaning that traders can feel confident that they will be able to execute on even the most sophisticated portfolio strategies.
Eligibility and collateral requirements
Margin trading is available to both individual and institutional traders. For individuals to qualify for margin trading, they must live within one of the 23 states where we currently offer the feature, have a valid Coinbase Pro account, and be active on Coinbase Pro, measured by recent trades, balances, and deposit and withdrawal activity*. We suggest keeping a balance on Coinbase Pro and trading regularly to become eligible.
For institutional customers to access margin trading, they must be based in one of the 43 states or 9 international countries where we currently offer margin for institutions.
Margin trading is risky and may not be suitable for everyone. The value of digital assets may fluctuate and, as a result, you may lose more than your original investment. This posting and any other material provided by Coinbase regarding margin trading does not specifically address individual financial objectives or the particular needs of any specific person. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Coinbase is not responsible for any loss of funds or other damages caused as a result of margin trading on Coinbase Pro. Past performance of an asset should not be taken as an indication or guarantee of future performance.
*Eligibility requirements pertain to enabling margin trading on Coinbase Pro. Additional requirements may apply to engaging in margin trading activity including, but not limited to, having enough collateral assets in your Coinbase Pro Account.
Check out the original article here.