About three years after the end of support for margin trading, the leading cryptocurrency exchange based in the United States, Coinbase reintroduced the service on Wednesday Notice.
Starting Wednesday, customers in 23 U.S. states using Coinbase Pro can trade as much as 3x leverage, and the service is also available to institutional merchants using the platform in 45 U.S. states and nine international countries.
Margin trading is a trading feature that allows traders to borrow money from an exchange platform to increase their existing trading balance in hopes of earning higher earnings in their open positions.
However, this is not the first time Coinbase has introduced margin trading. Back in 2017, the exchange had offered a service by the time a sudden drop in price pulled the value of ETH on the platform from $ 300 to as much as $ 0.3.
However, after the reintroduction, a spokesman found that Coinbase had taken enough steps to make its new margin trading service more robust. Among other things, the stock exchange cooperated with regulators and also launched a department to deal with the liquidation of marginal positions.
Meanwhile, although Coinbase’s launch of a triple lever for traders is likely to increase the platform’s declining market share in trading volume, it is relatively small compared to what is offered on other offshore exchanges such as Binance and BitMEX.
For example, Coinfomania reported earlier this month that BitMEX has been introduced XRP / USD perpetual contract with a 50x lever, although it offers up to 100x lever on other derivative products. Similarly, OceanEX launched the first trading in the world VeChain permanent contract with 5x lever.