Cryptocurrency
Coinbase rolls out margin trading. Again.
The Block reports, “If at first you don’t succeed, try again. “That’s the approach cryptocurrency exchange Coinbase is taking for margin trading. The digital asset exchange announced Wednesday that its take another swing at supporting margin after it suspended the functionality in 2017 following a flash crash in the price of ether. The precipitous drop […]
The Block reports, “If at first you don’t succeed, try again.
“That’s the approach cryptocurrency exchange Coinbase is taking for margin trading. The digital asset exchange announced Wednesday that its take another swing at supporting margin after it suspended the functionality in 2017 following a flash crash in the price of ether. The precipitous drop dragged ETH’s price down to 10 cents from more than $300 in a matter of milliseconds.
“Starting Wednesday, certain clients of the exchange will able to trade with as much as 3x leverage – a paltry amount, perhaps, in a crypto market where 100X leverage can be found at some offshore venues. Trading on margin allows a trader to borrow money for the potential of earning a bigger upside on a trade.
“The service will be available in 23 states for Coinbase Pro users, and it’ll be open to institutional clients in 45 states for U.S. dollar pairs. And looking ahead, Coinbase plans to expand access to the service over the next year…”