Coinbase, one of the biggest crypto-exchanges in the world, announced that it will now be offering margin trading to users with Coinbase Pro. ‘Coinbase margin trading will now be available on Coinbase Pro’- read the blog post on the Coinbase website it made the announcement. According to the post, traders will be able to submit their orders with a margin as high as 3x of the leverage.
The Coinbase margin trading feature is applicable only for users having USD as their base currency. Also, the feature is available for only twenty-three US states as far as retail investors are considered. As far as institutional investors are considered, the feature can be exploited in 45 states of the US.
Coinbase Margin Trading
Margin trading is used all the time in the market by Forex traders. As crypto plans to overtake the fiat, the margin trading offered by Coinbase. Margin trading in crypto can be very well utilized to multiply the profits. However, as much as intriguing it looks, a series of bad trades can multiply the losses as well. The margin trading by Coinbase Pro will enable the traders to participate in different trades simultaneously.
Coinbase will further investigate and verify if a certain user is qualified to use the margin trading feature. This is being seen as a brilliant upgrade for the crypto community. As Coinbase has started offering marginal trading, other crypto exchanges would also look to provide similar and better opportunities to their traders.
Coinbase margin trading isn’t available completely for international use. There are 9 countries that will be able to offer this facility to the traders at the moment. There’s no timeline for when the feature will be rolled out in other countries.
The 23 states in the US that will give marginal trading access to their users are – Florida, Texas, Illinois, New Jersey, Virginia, Georgia, Arkansas, Alaska, Oregon, Connecticut, New Hampshire, Massachusetts, Nebraska, North Carolina, Oklahoma, Colorado, Kansas, Maine, South Carolina, Utah, Wisconsin, Wyoming, West Virginia.
Featured image from Pixabay.