Coinbase International Caps Perpetual Futures Trading Leverage at 10x
Summary:
Coinbase International has set a trading leverage limit of 10x for its perpetual futures contracts, affecting cryptocurrencies such as Bitcoin, Cardano, Ether, Litecoin, Solana, and XRP. The move permits traders at 10x leverage to maintain a notional value cap of $90,000 over all perpetual contracts. The overseas exchange, which offers its services exclusively to non-U.S customers, launched in Bermuda following scrutiny of its U.S parent company by the Securities and Exchange Commission.
The international arm of Coinbase, a leading cryptocurrency exchange based in the United States, has announced a 10x trading leverage limit for its perpetual futures offerings. The announcement, made on December 28, states that the cap will affect popular perpetual futures contracts such as Bitcoin (BTC), Cardano (ADA), Ether (ETH), Litecoin (LTC), Solana (SOL), XRP, among others. Traders operating at the maximum 10x leverage will be allowed to maintain a total notional value of $90,000 across all perpetual contracts.
The organization further clarified that traders can continue transactions despite hitting the 10x leverage limits, but they will be confined to default initial margin (DIM) standards for their accounts. DIM for Coinbase International perpetuals varies between 20% (5x leverage) and 40% (2.5x leverage) based on the digital assets involved.
Frequent reviews of these limits are undertaken, reflecting the depth of the exchange's order book, volumes, and stress test outcomes in relation to insurance fund balances. Coinbase aims to maximize 10x leverage access for customers while concurrently managing systemic risks associated with higher leverage trading.
After obtaining a class F license from the Bermuda Monetary Authority (BMA), Coinbase International commenced the trading of perpetual futures for its clients on September 28. Eligibility assessments are conducted on prospective customers before they can open an advanced trading account with Coinbase International.
This service is exclusively for customers residing outside the U.S in selected countries. In May, following regulatory pressure on its U.S parent company from the U.S Securities and Exchange Commission, the international exchange was launched in Bermuda, renowned for a high degree of transparency, compliance, and cooperation in its regulatory framework.
Published At
12/28/2023 8:21:43 PM
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