Coinbase Pro

How does margin trading work on Coinbase?

In your Coinbase Pro profile, you can see Margin Trading information in the Margin tab, including your Margin Score, and take certain actions with your margin portfolio.

How to find out if you’re eligible for margin

Either visit your Profile page and click Margin, or click on the Margin Trading Now on Coinbase Pro ad on your homepage. 

If you’re eligible, you will be able to proceed with onboarding.

 

If you’re ineligible today, you will be able to enroll on our margin trading waitlist and click through a tutorial to learn more.

Learn more about margin eligibility here

How to learn about margin trading

Before margin trading, you will be required to go through an educational onboarding. Please take time to fully understand margin trading and the risks involved. There are valuable concepts and FAQs to understand before you begin. 

How to place an order using margin 

Margin is accessed directly within the Coinbase Pro trading experience. You can place a buy or sell for any USD margin books on Coinbase Pro under Order Form. Placing an order using margin opens a USD loan.

To create a margin order, you use the Order Form just as you would for a traditional spot trade on Coinbase Pro (for example, the “Amount” field still determines the size of the order). The difference is that on any books where margin affects how much base currency you can buy, you’ll see a new Buying Power row.

 

To understand more about how margin affects your Buying Power on a given book, click the Buying Power row. You can trade without margin - simply continue through to the Order Form and use the amount of Buying Power you’d like. 

 

What is Buying Power?

Your Buying Power is the amount of USD you already have in your balance plus the amount of  USD you can borrow. Borrowable USD is affected by how much collateral you have, how much of your credit limit you have used, and whether you are spending USD to buy collateral assets like BTC or non-collateral assets like ETH. 

Available USD: This is the amount of USD already in your account

Borrowable USD: This is the amount of USD that is available for you to borrow from Coinbase, on a particular crypto trading market, factoring in how much collateral is already in your portfolio.

In certain non-USD books, you may see Buying Power that is less than your available quote currency (such as BTC in the ETH-BTC trading pair). This occurs when your quote currency is serving as collateral assets for your loaned USD — so you are not permitted to make buys with it.

 

What is my Margin Score?

The Margin Score measures the health of your margin account. It warns you if you are approaching a Margin Call, the threshold at which you’re nearing liquidation risk. 

Keeping your margin score healthy

A score of 33% - 100% is considered healthy, meaning you have sufficient funds in your account to trade. If your score becomes unhealthy, you will receive a Margin Call.

What happens if you receive a Margin Call

If your margin score dips below a healthy threshold, you will see a red tag that reads “Danger” in your Portfolio.

 

We will email you to notify you of a Margin Call. At Margin Call, you must add collateral to your account. If you do not, Coinbase may automatically sell your crypto to pay back your loans — this is a “Liquidation” 

 

Liquidations

Coinbase will liquidate assets in your account if your Margin Score falls below a certain threshold. You will receive emails with a Margin Call letting you know that your funds are low and therefore at risk of being liquidated.

  • Once Coinbase liquidates the account, you will see the liquidation order in Orders

  • Your margin score after liquidation will return to healthy

 

How to understand your margin portfolio

Visiting your Portfolio page will allow you to access your account information. There you’ll see the Margin Details section which includes the amount of collateral assets in your account and your buying power. You’ll also see your margin score, which indicates the health of your account.

 

Under Assets, you can see what assets you have that are eligible to be used for collateral. The more collateral you have, the move you can borrow.

Increasing Credit Limit 

Currently, Coinbase Pro does not offer credit limit increases. However, we are considering credit limit increases. To inform Coinbase that you would like this feature, please go to Coinbase Pro > Margin > Credit Limit Increase to let us know. We will contact you when credit limit increases become available.

Disabling margin trading

You can disable margin trading by clicking Disable Margin. In order to disable margin, you must cancel all open orders using margin loans and pay back your outstanding margin loans by selling crypto assets to USD or depositing USDs. You may re-enable margin by visiting the Margin tab of your Settings.

 

Lending services are provided by Coinbase Credit Inc., a wholly owned subsidiary of Coinbase Global, Inc.  (NMLS#1895538)

 

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