Coinbase has launched margin trading for users of its cryptocurrency trading platform, Coinbase Pro. Both individual and institutional investors in selected regions now have access to Coinbase margin trading. The company plans to expand access to more regions and provide more types of collateral assets.
Coinbase Margin Trading Launches
Digital asset platform Coinbase announced Wednesday that it has launched margin trading on Coinbase Pro, its cryptocurrency trading platform.
The San Francisco-based company wrote:
Today we’re excited to announce the availability of margin trading for eligible Coinbase Pro customers … Coinbase Pro customers in 23 U.S. states can access up to 3x leverage on USD-quoted books.
Coinbase margin trading screenshot on Coinbase Pro.
Margin trading (or leverage trading) has been one of its most requested features, Coinbase noted. Margin trading “can amplify the impact of your trades by allowing you to borrow additional funds”, the company described. “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”, Coinbase detailed, elaborating:
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.
The platform claims to have over 30 million users trading over $150 billion. Coinbase previously offered margin trading of up to 3x leverage through its GDAX platform but the service was later suspended. Launched in 2015, GDAX was the company’s professional trading platform for individuals; it became Coinbase Pro in May 2018.
Coinbase Pro screenshot.
Margin Trading on Coinbase Pro — Who Is Eligible
In its Wednesday announcement, Coinbase explained that “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.” In contrast, the company added:
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.
Users may be subject to additional requirements for margin trading, including having enough collateral assets in their Coinbase Pro accounts.
Coinbase Pro “offers an intuitive interface with real-time orderbooks, charting tools, trade history, and a simple order process so you can trade from day one”, according to its website. It is available to users in a number of countries worldwide. Anyone with a Coinbase account can upgrade to a Coinbase Pro account and start trading. Some countries have access to crypto/fiat trading pairs while others can only access crypto/crypto trading pairs. The Coinbase Pro app is available for both iOS and Android operating systems.