Coinbase perpetual contract trading rules

The maximum order size for perpetual contracts on Coinbase is unlimited, but orders may be rejected if they exceed certain parameters established by the platform.

Nov 14, 2024 at 09:58 pm

Coinbase Perpetual Contract Trading Rules

Coinbase is a popular cryptocurrency exchange that offers a variety of trading products, including perpetual contracts. Perpetual contracts are a type of futures contract that do not have an expiration date, meaning that they can be held indefinitely. This makes them ideal for traders who want to speculate on the long-term price of an asset.

How to Trade Perpetual Contracts on Coinbase

To trade perpetual contracts on Coinbase, you will need to create an account and deposit funds. Once you have done this, you can follow these steps:

1. Navigate to the "Trade" tab on the Coinbase website.
2. Select "Perpetual" from the drop-down menu.
3. Choose the asset that you want to trade.
4. Enter the amount of the asset that you want to buy or sell.
5. Click on the "Buy" or "Sell" button.

How to Set Up and Manage a Perpetual Contract Position

Once you have placed a perpetual contract order, you will need to set up and manage your position. This can be done by following these steps:

1. Click on the "Positions" tab on the Coinbase website.
2. Select the perpetual contract position that you want to manage.
3. Click on the "Edit" button.
4. Enter the desired parameters for your position, such as the stop-loss price or take-profit price.
5. Click on the "Save" button.
6. Click on “Position settings”, and you can adjust the parameters on this page in real-time.

How to Close a Perpetual Contract Position

To close a perpetual contract position, you will need to follow these steps:

1. Click on the "Positions" tab on the Coinbase website.
2. Select the perpetual contract position that you want to close.
3. Click on the "Close" button.
4. Click on "Check Balance". Your earnings or losses will be credited to this account.

Key Rules for Trading Perpetual Contracts on Coinbase

There are a few key rules that you should be aware of when trading perpetual contracts on Coinbase:

1. Leverage is not available for retail customers. This means that you will not be able to borrow funds from Coinbase to increase your trading size.
2. The minimum order size is 100 1X contracts. Market price as the order type is not supported, so you’ll need to familiarize yourself with the interfaces.
3. There is no maximum order size. However, your order may be rejected if it is too large.
4. The initial margin requirement is 10% of the contract value. This means that you will need to deposit 10% of the value of the contract in order to open a position.
5. The maintenance margin requirement is 5% of the contract value. If the value of the contract falls below this level, you will be issued a margin call, and if you're not able to meet the margin requirements, you may face Margin Call liquidations.
6. The funding rate is 0.0025% per day. This means that you will pay a small fee if you are holding a long position, and you will receive a small fee if you are holding a short position.
7. Orders can be placed 24 hours a day, 7 days a week. Coinbase settlement incorporates a 2-stage funding process, where the funding payments are settled at 8:00 UTC and 16:00 UTC.

Please note that these rules and specifications are subject to change. Always refer to the Coinbase website for the most up-to-date information.