Coinbase launches stock perpetual futures for non-US traders, offering 24/7 trading, leverage, and access to major US stocks and ETFs.
Coinbase has launched stock perpetual futures for eligible non-US traders, adding a new way to trade popular US stocks at any time. The company said the new product enables users to trade in crypto, stocks and other assets on one platform. This move is a part of Coinbase’s plan to create one global exchange for trading crypto.
24/7 Trading for Stocks and ETFs
The new product is making it possible for traders to buy and sell perpetual futures that are linked to major US stocks. At launch, the list contains the well-known “Magnificent 7” companies. These include Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms and Tesla. These stocks are one of the most traded companies in the world.
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Traders can also use perpetual futures that are linked to major exchange traded funds. These are SPY, which tracks the S&P 500 index, and QQQ, which tracks the Nasdaq-100 index. Coinbase said more stocks, indices and commodities may be added later depending on the demand.
Unlike traditional stock markets, the new futures can be traded twenty-four hours a day. The system operates 24 hours a day, 7 days a week (including the weekend). Normal US stock markets only open 5 days a week so this change is a way for traders to have more freedom.
Another important feature is the leverage. Traders can use up to 10X leverage in single stocks. For ETF Futures, the leverage is as much as 20x. This means that traders can control larger positions, with less money, but with greater risk.
All trades are settled in USDC, which is a digital dollar stablecoin. The platform also offers cross-margin trading, which enables users to share funds between different trades. This makes trading quicker and more fluid.
Available Only for Non-US Traders
Coinbase said the new futures are not accessible for US users down the line. The product is only open to qualified traders outside the United States. The company said rules in the US make it more difficult to provide this sort of trading.
Retail traders can use the Coinbase advanced platform to reach the futures. Large investors and institutions are able to trade through Coinbase International Exchange. The service operates under the Coinbase Bermuda, which is regulated by the Bermuda Monetary Authority.
Coinbase said it wants to expand the service to more regions in the future. The company is also interested in adding more assets so the traders can use one platform for many markets. This includes crypto, stocks, commodities, and prediction markets.
Coinbase Pushes Toward One Global Exchange
This launch is part of Coinbase’s plan to be able to create what it calls an “everything exchange.” The idea is to enable users to trade lots of types of assets in one place. By adding stock perpetual futures, Coinbase is attempting to bridge conventional finance with crypto trading.
Stock markets typically close at night and on weekends, but whatever is happening globally, never stops. News, economic reports and changing prices of cryptocurrencies can occur at any time. With 24/7 futures trading, users will not have to wait for the markets to open before reacting.
For small traders, the new system is more open to US stocks with less capital. For large investors, it helps in managing risk and moving money from one market to another, and that too in a short span of time. Because of this, many experts believe round-the-clock trading could be likely to become more common in the future.
Coinbase said that it will keep working to improve the platform and add new features. As people are trading digitally more and more the company hopes its exchange will be able to provide a single place for people to trade almost any asset at any time.