Coinbase introduces perpetual futures trading

News

2023-10-19

Coinbase Advanced has expanded its offerings to include perpetual futures trading for its non-U.S. retail traders.

Coinbase, a leading cryptocurrency exchange, has unveiled perpetual futures contracts for its retail customers located outside the United States and the United Kingdom. This development allows users to engage in futures contracts on major crypto, including Bitcoin, Ethereum, Litecoin, and XRP. What sets these contracts apart is that they are settled in USDC, a stablecoin that maintains a 1:1 peg with the US dollar.

Perpetual futures are unique in that they don't have an expiration date. This means traders can leverage these contracts to speculate on the price movements of digital currencies over an indefinite period. This move by Coinbase is aimed at granting its global retail clientele access to the world of derivatives trading via the Coinbase Advanced platform. The platform is a one-stop-shop for both spot and futures trading.

Coinbase emphasized the ease of use and security of its platform, stating, "Customers can now access both our highly liquid spot markets and derivatives in one integrated, secure, and easy-to-use interface." For those keen on leveraging their trades, the futures contracts will offer up to 5x leverage. However, for XRP, the leverage is capped at 3x. As an introductory offer, Coinbase has set the fee rate at 0% for makers and 0.03% for takers.

Security remains a top priority for Coinbase, especially when it comes to its retail derivatives offerings - the company assures that customer assets are held in a 1:1 ratio. Additionally, the futures exchange is backed by an insurance fund and a liquidity support program, both denominated in USDC, as opposed to an exchange token.

Coinbase is not stopping here. The company has plans to further enhance the Coinbase Advanced platform. They aim to cater to advanced retail traders worldwide by introducing more features, such as advanced order types, integration with TradingView charts, and trading APIs.

Accessible perpetual futures contracts


Bitcoin Perpetual Futures

Ethereum Perpetual Futures

Litecoin Perpetual Futures

XRP Perpetual Futures

Product type

Linear perpetual (USDC-settled)

Linear perpetual (USDC-settled)

Linear perpetual (USDC-settled)

Linear perpetual (USDC-settled)

Expiration

Perpetual/no expiration

Perpetual/no expiration

Perpetual/no expiration

Perpetual/no expiration

Underlying market

BTC - USD

ETH - USD


LTC - USD


XRP - USD

Trading Hours

24 hours/day, 7 days/week, 365 days/year (excluding maintenance)

24 hours/day, 7 days/week, 365 days/year (excluding maintenance)

24 hours/day, 7 days/week, 365 days/year (excluding maintenance)

24 hours/day, 7 days/week, 365 days/year (excluding maintenance)

Minimum Order Size

10 USDC

10 USDC

10 USDC

10 USDC

Maximum Leverage

5x (20% base initial margin)

5x (20% base initial margin)

5x (20% base initial margin)

5x (20% base initial margin)

For more detail about perpetual futures of Coinbase, head up to their website at: https://www.coinbase.com/

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