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| VIEW EVENT INFORMATION: Bitcoin |
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Coinbase Has Added Margin Trading To Its Bitcoin exchange |
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About the organization Bitcoin:
Type: Business
Sub-Types: Website, Money Transferring Agent, Computer Software, Digital Currency, Cryptocurrency |
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Notable Organizations: Bitcoin, Techcrunch
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| GDAX, the cryptocurrency exchange run by Coinbase, has added margin trading to the platform.
Eligible traders can now trade up to 3X leveraged orders on Bitcoin, Ethereum and Litecoin order books.
If you’re unfamiliar with trading and exchanges, margin trading is when you borrow money from your broker to buy or sell more stock than you can afford. It’s essentially a short-term loan. By buying or selling on margin, traders can increase their leverage and buying power, potentially generating profits beyond what their own cash balance would have supported.
This feature is mainly geared toward institutional investors. That’s because Coinbase has launched the feature attempting to fit within the boundaries of the Commodity Exchange Act.
This means that traders have to certify that they meet one of the qualifications to be allowed to trade on margin. While the full list is here, the requirements include things like being a corporation with a net worth exceeding $1,000,000 and trading on margin in order to hedge risks associated with your business. Individuals need to have a minimum of $5,000,000 invested on a discretionary basis in order to be allowed to trade on margin. |
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