Coinbase International, the international trading arm of Coinbase, has introduced a maximum leverage limit of 10x for perpetual futures trading. The company outlined this new policy in a detailed help page, clarifying that users can continue transactions beyond the 10x limit. However, new transactions will only be permitted at leverage rates specified in its Default Initial Margin (DIM) rules.
In conjunction with the 10x cap, Coinbase International has established a maximum notional value limit of $90,000 applicable to all positions held by an Ultimate Beneficial Owner (UBO). Additionally, individual positions involving Bitcoin (BTC), Ethereum (ETH), and 13 other assets have specific limits denominated in the respective cryptocurrencies.
The company emphasized its commitment to regularly reviewing these limits and suggested the possibility of offering higher limits in the future as its operational activity increases.
Perpetual futures, the financial instruments in question, represent a type of derivatives contract allowing traders to speculate on futures prices without a predetermined expiration date. Acknowledging the inherent risks associated with this form of investment, Coinbase International highlighted the potential for amplified losses and gains through leverage, cautioning that such risk levels “may not be suitable for all investors.” The platform urged investors to carefully assess their objectives, risk tolerance, and experience before engaging in perpetual futures trading.
Coinbase International, regulated under the Bermuda Monetary Authority (BMA), launched in May 2023 with an initial focus on offering perpetual futures trading to institutional investors. In September, it expanded its services to include retail investors, and in December, it further diversified its offerings by introducing spot trading.
It is important to note that Coinbase International is currently accessible to customers in select countries outside the United States, operating within the regulatory framework established by the Bermuda Monetary Authority.
