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Coinbase crypto exchange is again adding a margin trading service, but with some serious restrictions.
Margin trading will be available on Coinbase.Pro - an exchange for professional traders. Both retail and institutional investors will be able to bid with a leverage of up to 3x. Bidding will be available with all pairs in US dollars.
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This feature is currently offered to retail investors from 23 US states. Institutional investors will gain access to margin trading in 45 states and nine countries.
The platform has not supported margin trading for a long time, and now plans to provide the opportunity to trade with leverage only for the most advanced traders.
The company is going to track the pastuser activity on Coinbase Pro and evaluate transactions, balances, deposits and withdrawals. Only active traders with sufficient collateral in their accounts will be able to place margin orders.
The San Francisco-based cryptocurrency exchange offered this service in 2017, but abandoned it after a sudden crash and an unexpected collapse in the price of Ethereum.