Coinbase Adds Margin Trading on Bitcoin, Ethereum and Litecoin to GDAX
- GDAX hopes offering margin on BTC, ETH, and LTC will attract new institutional clients, reducing volatility.
San Francisco headquartered cryptocurrency wallet and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Coinbase has added margin trading on GDAX, its institutional digital asset exchange. Margin trading has been made available for eligible clients of GDAX, who can now trade up to 3x leveraged orders on its BTC, ETH, and LTC order books.
Adam White
Adam White, Head of GDAX, explained the rationale for the move: "Over the last few years, we have seen growing interest from institutions that desire advanced trading features. We are excited to launch a margin feature that meets the high demands of professional traders while addressing federal and state regulatory requirements. We believe this feature will attract a new wave of institutional clients, ultimately reducing Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and supporting growth of the digital asset industry."
As the company is US-regulated, clients must be approved as Eligible Contract Participants in order to have access to margin on GDAX. For that they need to meet one of several criteria. These ensure that only big players can access the service, with requirements such as being a corporation with a net worth exceeding $1,000,000 or total assets exceeding $10,000,000.
Also eligible can be: individuals with amounts invested on a discretionary basis, the aggregate of which are in excess of $10,000,000; commodity pools that have total assets exceeding $5,000,000; regulated insurance companies; investment banks; brokers; dealers; and futures commission merchants.
San Francisco headquartered cryptocurrency wallet and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Coinbase has added margin trading on GDAX, its institutional digital asset exchange. Margin trading has been made available for eligible clients of GDAX, who can now trade up to 3x leveraged orders on its BTC, ETH, and LTC order books.
Adam White
Adam White, Head of GDAX, explained the rationale for the move: "Over the last few years, we have seen growing interest from institutions that desire advanced trading features. We are excited to launch a margin feature that meets the high demands of professional traders while addressing federal and state regulatory requirements. We believe this feature will attract a new wave of institutional clients, ultimately reducing Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and supporting growth of the digital asset industry."
As the company is US-regulated, clients must be approved as Eligible Contract Participants in order to have access to margin on GDAX. For that they need to meet one of several criteria. These ensure that only big players can access the service, with requirements such as being a corporation with a net worth exceeding $1,000,000 or total assets exceeding $10,000,000.
Also eligible can be: individuals with amounts invested on a discretionary basis, the aggregate of which are in excess of $10,000,000; commodity pools that have total assets exceeding $5,000,000; regulated insurance companies; investment banks; brokers; dealers; and futures commission merchants.