Coinbase International, the international trading arm of Coinbase, has announced that it has set leverage limits to 10X on its perpetual futures contracts. This upgrade allows users to execute more efficient trading strategies. However, new transactions are only permitted at leverage rates set out in its Default Initial Margin (DIM) rules. The company has also implemented a maximum notional value limit of $90,000 that applies to all positions belonging to an Ultimate Beneficial Owner (UBO).
Perpetual futures are a type of derivatives contract that allows traders to speculate on the futures price without a definite expiration date. While this type of investment can offer high gains through leverage, it also carries the risk of maximized losses. Coinbase acknowledges these risks and advises investors to consider their aims, risk appetite, and experience before engaging in such trading.
Coinbase International, regulated under the Bermuda Monetary Authority (BMA), initially launched in May 2023 to provide perpetual futures trading to institutional investors. It later extended its services to retail investors in September and added spot trading in December. The company reviews its limits frequently and may offer higher limits as its activity increases.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Coinbase International, Ultimate Beneficial Owner (UBO), Bermuda Monetary Authority (BMA) |
| Currencies | Bitcoin, Ethereum |
| Securities | None |
