Coinbase Enables Margin Trading Up to 3x But Conditions Apply for Individual Traders

  • Coinbase Pro customers in 23 US states can access up to 3x leverage
  • To be qualified for margin trading, while institutional customers need to be based in one of the 23 states, have a Coinbase Pro account, enough collateral assets, and activity measured by balances & trades

Coinbase has announced margin trading for its “eligible” Coinbase Pro customers. The San Francisco-based cryptocurrency exchange announced yesterday. From now on, Coinbase Pro customers in 23 US states can access up to 3x leverage in USD quoted books.

Coinbase had been one of the few exchanges that did not offer margin, though a really small amount in the line of Bitfinex and Kraken’s 5x, it’s a step in the margin trading direction. Meanwhile, leading cryptocurrency exchange Binance offers a whopping 125x leverage, outdoing BitMEX’s 100x.

Eligibility to Qualify for Margin Trading

The exchange says, margin trading is a much desired feature by their clients and now they have delivered it. Instead of depositing your own additional capital, Margin or leverage basically allows one to borrow additional funds from the platform as such amplifying the impact of the trades.

Only persons who meet the requirements for margin trading will live within one of the 23 states, have a Coinbase Pro account and are active on Coinbase Pro measured by recent balances, trades, deposit and withdrawal activity can avail of this service.

Additional requirements may also apply to engage in margin trading including having an account on Coinbase Pro stacked with enough cryptocurrencies to be used as collateral assets. Meanwhile, institutional customers must be based in one of the 23 states or 9 international countries to access margin trading. 23 states where margin trading is currently available in:

  • Alaska
  • Arkansas
  • Colorado
  • Connecticut
  • Illinois
  • Florida
  • Georgia
  • Kansas
  • Maine
  • Massachusetts
  • Nebraska
  • New Hampshire
  • New Jersey
  • North Carolina
  • Oklahoma
  • Oregon
  • South Carolina
  • Texas
  • Utah
  • Virginia
  • West Virginia
  • Wisconsin
  • Wyoming

Smart or Yikes?

While trader Scott Melker sees this as a “very smart and conservative” move and those “with a Coinbase account who doesn't know where else to trade will be using this,” not everyone was positive towards this move. Trader Jonny Moe made fun of the move by stating in a tweet,

The exchange says over the next year, they plan to further expand this service to customers located in other regions as well.

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