Coinfeeds Daily → Coinbase Launches Regulated Crypto Futures Service for Retail Traders

Coinbase Launches Regulated Crypto Futures Service for Retail Traders

Published: Nov 02, 2023 | Last Updated: Nov 02, 2023
Howard Kane

Coinbase Advanced offers nano-sized futures contracts for Bitcoin and Ether, providing risk management and margin trading opportunities

Coinbase Introduces Regulated Crypto Futures Services

Coinbase, a leading cryptocurrency exchange, has launched a new service called Coinbase Advanced, which offers regulated crypto futures to retail traders in the United States. The development comes after Coinbase Financial Markets (CFM) received the green light to operate as a Futures Commission Merchant (FCM) entity.

Trading Nano-Sized Futures Contracts

Coinbase Advanced allows users to trade nano-sized futures contracts for Bitcoin and Ether. These contracts are specifically sized for retail traders, with 1/100th of a Bitcoin and 1/10th of an Ethereum. This new offering provides opportunities for risk management, margin trading, and speculation on price movements.

Educational Content for Users

In addition to the futures service, Coinbase is also providing educational content through Coinbase Learn. This initiative is aimed at helping users understand the complexities of futures trading and the potential risks involved. The company has emphasized that futures trading carries greater downside risk, making education a crucial component of their new service.

Availability of the Service

The services are currently available on the web version of Coinbase and will soon be accessible on mobile devices. This move is part of Coinbase's broader strategy to expand its product offerings and cater to a wider range of customer needs in the rapidly evolving crypto market.

Regulatory Approval

The launch of Coinbase Advanced was made possible after the company obtained regulatory approval from the National Futures Association. This approval underscores the growing acceptance of cryptocurrency-related services by regulatory bodies and paves the way for further innovation in the crypto space.

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