With Margin Trading, you can borrow USD from Coinbase in order to buy cryptocurrency on Coinbase Pro.
Trading on margin means borrowing from Coinbase
Coinbase Credit LLC will act as the lender to you. You, the customer, are the borrower. Terms and conditions are shared when you enable margin on your Coinbase Pro account.
Certain cryptocurrencies will be be considered as eligible collateral for borrowing (“Collateral”)
- The more collateral you have, the more you can borrow.
- USDC, and USD count 1:1 as Collateral with borrowed funds and the USD value of your BTC is also considered 1:1 Collateral
- This list will be updated as Coinbase Credit LLC continuously evaluates assets eligible to be considered Collateral
Certain cryptocurrencies will be considered as non-collateral assets.
- The value of non-collateral assets (like ETH, LTC and others) does not count towards your ability to borrow for margin trading
- Coinbase is constantly re-evaluating which crypto assets count as collateral and non-collateral assets; We will notify you of changes
Margin trading offers enables up to 3x leverage on USD-quoted books.
- Today, margin trading on Coinbase Pro provides up to 3x leverage, up to the line of credit granted to you. For example: for every $1 you put in, Coinbase gives $2 for a total of $3. If your line of credit is capped at $100, you may only borrow $100 even if 3x leverage is greater than $100.
- Another way to view this is that you can borrow 2x the collateral amount
- Coinbase is constantly evaluating which currencies may be borrowed for margin trading and how much leverage is available. Margin traders will be notified of any changes.
You will be granted a USD line of credit up to a specific verified amount. Credit limit increases are not available today, but you may sign up to be notified when they become available by visiting your Margin Settings section.
What are the Financing Terms of Margin?
Coinbase treats each trade on margin as a loan. To comply with applicable law, these loans must be closed every 25 days.
You may choose to pay off your loan at any time during this period by selling crypto assets for USD.
Alternatively, Coinbase will close each loan at 25 days by selling crypto for the value of the loan, and opening a new loan for you in the same dollar amount and subject to the same terms as the preceding loan. Your resulting positions will be the same, less trading fees and spread.
By enrolling in margin, you acknowledge that if you haven’t paid off a loan in 25 days, you are instructing Coinbase to close your loan and open a new loan in the same amount.
What are the fees for Margin Trading?
Coinbase charges a fixed, annualized interest rate of 8% for when you use margin — this includes both open and filled orders.
You will only be charged for the periods of time when you have an open and filled order utilizing your line of credit. Interest is calculated hourly for any hour in which you use margin, and is charged daily for all hours in which margin was consumed.
Interest is deducted from your USD balance in your Coinbase Pro account.
Margin Trading on Coinbase Pro
In your Coinbase Pro Profile Settings, you can see Margin Trading information in the Margin tab, including your Margin Score. For mobile users this can be found in your Portfolio page.
For more information on how margin trading works on Coinbase Pro (including information on margin liquidations and margin call), please visit this help page.
Cash margin lending services are provided by Coinbase Credit LLC, a wholly owned subsidiary of Coinbase Global.
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