In response to trader interest in larger opportunities, Coinbase increases max leverage on international perpetual futures.
According to X, Coinbase CEO Brian Armstrong announced that the exchange had increased the maximum leverage on international perpetual futures. It has increased from 20 times to 50 times. According to Armstrong, this change followed many user requests.
Source – X
The target of this increase is advanced traders not based in the U.S. With that desire for more market exposure, Coinbase can now compete through increased leverage products.
The decision by the exchange indicates the market is still in need of more aggressive trading products. A lot of merchants desire larger possible payoffs concerning the futures contracts.
The Leverage Leap: Bigger Gains, Bigger Risks
Coupons increase profit and risk. At 50x leverage, a little movement could bully off transactions within a few seconds. Traders who are ready to risk more are now able to optimize their trades.
This action by Coinbase represents a desire to develop with the needs of traders. Armstrong solicited additional responses emphasizing product changes by the community.
The company is going the extra mile to address the requirements of the advanced investors. This may lure a new breed of futures traders to high-octane trading.
The increase in leverage options also places Coinbase in the same boat with other large crypto exchanges. Such high leverage levels have long been available to many competitors around the world.
Those trading with a 50x leverage should be careful. The markets move up and down, and the higher the leverage, the bigger the risk. Liquidation will be caused by even a minor movement in prices.
Even so, traders will have greater flexibility. They have the ability to scaffold positions based on their investing requests and their book trades.
Armstrong linked to a post on X that explains why Coinbase takes trader feedback seriously. This was what a bunch of traders asked, he said. Tell us what more we may add!
Coinbase’s Global Futures Strategy Intensifies
The international reputation of Coinbase can be strengthened through the use of rebound leverage on foreign perpetual futures. The exchange has very tight leverage constraints in the U.S. because of regulation, but more lenient elsewhere.
This approach would strike a highly leveraged futures market. It is an attempt to win a larger market share and more futures trading volumes.
The upscale is another indicator of how Coinbase wants to innovate its futures platform. The incorporation of features that are requested by the community makes the platform competitive..
The decision to increase perpetual futures leverage to fifty times is audacious. It signifies an increase in the level of sophistication and risk-taking among crypto traders across the globe.
This is a bold product change that Coinbase is exploiting. It is also willing to transform at a rapid pace within a competitive crypto derivatives market.
