Coinbase expands trading in perpetual futures contracts
Coinbase shows its commitment to expanding its trading landscape with the launch of perpetual futures contracts for three cryptocurrencies : Polkadot (DOT), Internet Computer ( ICP ), and NEAR Protocol ( NEAR ). According to the announcement, users can access these perpetual futures contracts on the Coinbase International Exchange and Coinbase Advanced platforms. These are financial derivatives that allow traders to speculate on the price development of an asset without necessarily owning it. Coinbase explains on its official website:
“The perpetual futures contracts aim to track the performance of an underlying spot asset and have no expiration date, allowing you to hold your positions until they are closed or liquidated. In perpetual futures trading, margin is used to enable trading with fewer resources…than in traditional spot market trading.”
According to the report, Coinbase continues to expand its offering of trading instruments to provide investors with options for trading futures contracts. In addition, investors have the opportunity to use the strategy of portfolio diversification to minimize risk while benefiting from market movements.
Coinbase expands trading in perpetual futures contracts
In May 2023, Coinbase reached an advanced stage of its perpetual futures initiative with the launch of the Coinbase International Exchange, which was accompanied by a Class F license from the Bermuda Monetary Authority. This step should also enable non-US citizens to trade with perpetual futures.
According to the exchange, the perpetual futures contracts were developed with a strict compliance standard on the Coinbase International Exchange. By the second quarter of last year, it had recorded a national trading volume of $5.5 billion.
“As announced in Phase II of our “Go Broad, Go Deep” strategy, we are committed to working with as many regulators as possible to create a cryptocurrency framework that allows cryptocurrency technology to continue to innovate. We chose to build our business in the United States and become a publicly traded company because we believe the United States should lead the way in modernizing our financial system. However, by expanding access to Perpetual Futures to eligible customers outside the U.S., we are pleased to further advance our mission to modernize the global financial system and provide greater economic freedom and opportunity to users around the world.”
In October last year, users outside the US had the opportunity to trade perpetual futures on Coinbase Advanced. The global derivatives market accounts for 75% of the total crypto trading volume worldwide. Since last year, customers have been able to trade BTC, ETH, LTC and XRP on the platform. The exchange also announced that it will add more contracts in the coming months. Customers will also benefit from a low introductory fee of 0% (Maker) and 0.03% (Taker).
Coinbase has stated that it does not engage in market making. According to the company, liquidity is provided by established and independent liquidity providers who are subject to strict compliance checks.
