| Coinbase Help

This article addresses our US-regulated derivatives offering which is available to residents of the US and most countries in the European Economic Area ("EEA"). You can learn more about Coinbase's Derivatives products on the Derivatives help page. For US customers, derivatives balances are held with Coinbase Financial Markets (CFM), which is a CFTC registered futures commission merchant and a member of the National Futures Association. Spot balances are managed by Coinbase Inc. (CBI). Funds held with CBI do not benefit from the CFTC's customer protection regime.

In the EEA, this service is available only to eligible customers through Coinbase Financial Services Europe Ltd. (CBFSE). Access is subject to completion of CBFSE’s onboarding and verification requirements, including identity checks and the appropriateness and target market assessments applicable under the current CBFSE framework; if those requirements are not met, access may be refused, limited or withdrawn.. EEA Clients need to sign up for a Coinbase Luxembourg S.A. spot account in order to access CBFSE's offering.

You'll need to have an existing Coinbase account for spot trading before opening your derivatives account.

Availability

Derivatives and perpetuals trading can be accessed by going to any relevant derivatives or perpetuals market.

API: Developer documentation can be found here.

Once your application is approved, keep in mind:

The futures and perpetual-style futures contracts we offer are cash-margined, which means you’ll need USD in your Coinbase account to get started. To start trading, deposit USD or USDC to your spot account. When you open a futures position, Coinbase will place a hold against these funds. These funds, which are held for anticipated margin requirements, will be transferred from your spot account to your derivatives account at 5pm ET. Learn more
With futures and perpetual-style futures, you can go long or short. You can open a long position by placing a buy order, or a short position by placing a sell order. Futures contracts are traded in whole numbers. For example, you can buy 2 contracts or 3 contracts, but not 2.5.
Check the contract size to understand your exposure. To ensure broader access to the futures and perpetual-style futures markets, we offer nano Bitcoin contracts that are sized at 1/100th of a Bitcoin, and nano Ether futures contracts that are sized at 1/10th of an Ether. Each futures contract has a different contract size, which can be found in the order ticket or in the contract trading details page.
You only need to put up the initial margin required, not the total value of the position. With leveraged futures, you only need to put up a fraction of the value of your position, which increases capital efficiency. When placing the order, the total line item represents the initial margin required plus fee. When your position is closed, the initial margin held will be released back to you (plus or minus any profit or loss incurred). Leverage in futures trading can work for you or against you. The risk of loss using leverage can exceed your initial investment amount.
You can close positions in a few different ways. Closing a position means making a trade on the opposite side of your position, for the same quantity. For example, if your position on the BTC November contract is Long 2, you would place a Sell order for 2 BTC November contracts. You can place this order directly in the order form, or you can select your position and then choose Close position.
Pay attention to when your futures contracts expire. The name of each contract indicates the date it expires. For example, BTC 29 NOV 24 is a contract that expired on November 29, 2024. Futures contracts have different expiry dates, which you can view by selecting the information icon next to the contract name on the trade page. You can close your position before expiry, roll your position into the next contract, or wait to let your position expire at the expiry date. The next month’s futures contract will become available to trade 2 days before the current month expires. You can also opt in to automatic rolling. Learn more

Application + qualification FAQ

Why was my application rejected?

To trade derivatives contracts like futures, you must meet certain regulatory requirements. We also conduct a review of your age, experience, employer/title, income, and net worth to determine suitability. All information must be verified and a photo ID is required.

For your application to be processed, please ensure:

Your information is complete and accurate
Your legal name on the application matches the name on your Coinbase account (see how to update your legal name)
Your social security number or applicable tax/personal/national identification number is correct

Note that more than three application attempts in one day will lead to a cool down period of seven days before you’re allowed to re-apply.

If I made a mistake during my application, can I reapply?

Yes, but too many attempts will lead to a cool down period. If you believe there is an error in your rejection, please contact us.

Do I have to be a US resident?

No. Derivatives trading, in addition to being offered via Coinbase Financial Markets to legal residents of the United States, is also offered to eligible EEA customers by CBFSE.

What if I move abroad after being approved?

If you move, you must change your address on your spot account. If you no longer have an eligible address, the futures order screen will no longer be available to you. Any open positions must be liquidated prior to moving, as you will no longer have access to the order screens. If you have any open positions or orders and no longer reside in an eligible region, your positions will be liquidated and orders will be closed.

Why do you need my Tax Identification Number (TIN)?

The Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) require a collection of Tax Identification Number (TIN) to trade futures contracts. CBFSE may ask you for your TIN or other national client identifier as part of onboarding and to meet applicable tax, transaction-reporting and other regulatory obligations. All data is encrypted and kept private.

Account FAQ

Why can’t I access my Derivatives account?

You may lose access due to a variety of reasons, including moving outside of an eligible zone or failure to adhere to rules and regulations. For further details, please see your account agreement and let us know if you still have questions.

How do I close my account?

If you'd like to close your derivatives account, you first need to close your futures positions, cancel any open futures orders, and transfer any funds from your derivatives account back to your spot account. If you prefer, we can do this during the closure process. Note that transferring cash spot account takes up to two business days.

To close your account, select Close futures account near the end of your profile page.

Note: You must close your derivatives account before you can close your spot account.

Trading FAQ

How much leverage is available to me if I’m eligible to trade futures?

The amount of leverage to trade a futures contract is determined by the notional value of the contract (calculated as the price of the underlying asset multiplied by the contract multiplier), divided by the initial margin requirement for that contract. When a new order is placed, the exact amount of leverage for that position will be displayed on the order entry page.

As a reminder, the risk of loss in futures contracts can be substantial. Leverage in futures trading can work for you or against you. The risk of loss using leverage can exceed your initial investment amount. EEA retail customers have negative balance protection to ensure you don’t lose more than the funds you have deposited and your account balance doesn’t fall below zero.

For more information on leverage, please visit Leverage and margin rates (US Derivatives).

What is the minimum contract size I can trade?

To ensure broader access to the futures markets, we offer Nano BTC futures contracts that are sized at 1/100th of a Bitcoin, and Nano ETH futures contracts that are sized at 1/10th of an Ether.

To learn more, please visit Order management (US Derivatives).

What is the maximum number of contracts I can trade?

You have limits on the number of positions you can hold based on your income and net worth qualifications. To increase your Position Limit Tier, you must certify that you meet additional financial requirements. Our maximum position size is applied per instrument at the portfolio level. Your maximum position size includes existing positions that have already been executed as well as open orders. Note that maximums are subject to change with market conditions.

For more information on your maximum position limits, please visit Position limits (US Derivatives).

What days and times can I trade futures?

All crypto futures markets are open for trading 24/7, with a one-hour break on Fridays from 5:00 PM - 6:00 PM ET (23:00 - 00:00 CET).

All other futures markets are open for trading from Sunday at 6:00 PM ET (00:00 CET) until Friday at 5:00 PM ET (23:00 CET) with a one-hour break each day from 5:00 PM - 6:00 PM ET (23:00 - 00:00 CET), and are closed on market trading holidays.

When markets are closed, you can queue requests to cancel an open order for when the market re-opens. In Advanced mode, you can also queue limit and stop-limit orders.

Why did I receive a “Form 40 Large Trader” notice from the CFTC?

Active traders may receive a routine email from the CFTC if they hold large futures and options positions. If you hold more than 25 futures contracts at market close, the CFTC may ask you to complete Form 40. To avoid potential trading restrictions or penalties, complete the "Statement of Reporting Trader" Form 40 when asked. The CFTC's email will include a 9-digit code in the subject line, a link to their portal, a due date, and additional filing information. Note that reaching a reporting level doesn't guarantee a Form 40 request. For more information, please read Form 40 - Large trader reporting (US Derivatives).

For more information and assistance, please visit the CFTC’s FAQ page.

United States: Information provided is not investment advice. Funds held with Coinbase Inc. do not benefit from the CFTC’s customer protection regime. Access to the referenced financial products requires user eligibility, and may not be available in all jurisdictions. The risk of transacting in futures can be substantial and may not be suitable for everyone, possibly resulting in a loss of funds greater than the total amount of funds you have on deposit in your CFM account, together with any funds in your Coinbase Inc. account or any other accounts held with Coinbase affiliates. Leverage in futures trading can work for you or against you. The risk of loss using leverage can exceed your initial investment amount. Please review the CFM Futures Risk Disclosure Statement for more information. Coinbase Financial Markets makes no representation on the suitability of information provided or to a particular financial product.

Coinbase Financial Markets is a member of National Futures Association (NFA) and is subject to NFA's regulatory oversight and examinations. However, NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets.

Assets held in your CFM futures account will be segregated from CFM’s own assets. All customer assets held by CFM will be subject to customer protection regulations of the CFTC, including CFTC Rule 1.20. In the unlikely event of CFM’s bankruptcy, your futures account is protected under CFTC regulations, including Part 190 rules, and specific provisions of the U.S. Bankruptcy Code.

Any funds transferred to your Coinbase Inc spot account won’t receive the preferential treatment afforded to funds held in a regulated futures account pursuant to CFTC's regulations and the U.S. Bankruptcy Code.

European Economic Area: The information contained on this page does not constitute marketing material or a solicitation to trade in the products or services described here.

Derivatives trading is available to eligible EEA customers through Coinbase Financial Services Europe Ltd. (CySEC License 374/19). In order to access derivatives, customers will need to pass through our standard assessment checks to determine their eligibility and suitability for this product.

Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. Derivatives are complex instruments and are not suitable for most investors. You should consider whether derivatives are suitable for you, and seek independent professional advice if needed. The value of your product can go up and down, and your capital is at risk. You could lose all invested capital.

The products and services offered here may however not be available in your country, or may not be offered by Coinbase Financial Services Europe Ltd.

For eligible EEA customers, negative balance protection applies. Learn more here. If your deposit is in EUR, it will first be converted to USDC, and then USDC will be converted to USD.