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Coinbase Opens Crypto Futures Trading for European Users

Highlights:

  • Coinbase has rolled out regulated crypto futures for eligible traders in 26 European countries. 
  • The exchange stated that the new setup allows users to access crypto derivatives on a single platform. 
  • Two main types of cash-settled futures, including perpetual and dated futures, will be available for users. 

America’s largest cryptocurrency exchange, Coinbase, has started offering futures trading options to users across Europe. The trading platform announced the move in a press release on March 9, noting that users can access the new feature through its Coinbase Advanced platform. According to the publication, users from 26 European countries, including the Netherlands, Germany, and France, will benefit from the exchange’s latest initiative. 

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Coinbase said its new service is part of a broader plan to build a platform where users can trade many financial products in one place. While the company began mainly as a cryptocurrency exchange, it plans to add more asset types over time, especially as crypto regulations in Europe and other regions seem to become clearer. 

Previously, European traders often traded crypto derivatives on platforms that were not fully regulated, as regional rules on derivatives have made it difficult for many exchanges to offer these products. Coinbase stated that its new offering aims to address this challenge by providing regulated futures trading through its licensed Markets in Financial Instruments Directive (MiFID) entity in Europe. This allows traders to access crypto derivatives on a platform with a strong global reputation. 

The trading platform stated:

“Coinbase has begun rolling out futures contracts access to Coinbase Advanced users in 26 European countries, offered by our MiFID entity. Users will be able to trade crypto contracts, from Bitcoin to Solana, and equity-index contracts.” 

Users to Benefit from Several Trading Options as Coinbase Opens Crypto Futures

With the new setup, European users will be able to trade several types of futures contracts across crypto assets and stock-related indices. Some available contracts are linked to major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). The platform will also list index products like the Mag7 + Crypto Equity Index Futures, which combine technology stocks with crypto exposure.

Coinbase said it is introducing two main forms of cash-settled futures. The first is the perpetual-style futures that run for five years and use a system that adjusts prices every hour. With this, they stay close to the value of the underlying asset.

Notably, these styles of futures are settled once each day. The second category of futures is the dated futures. Unlike perpetual-style futures, these contracts have a fixed expiry date, usually monthly or quarterly. Their value updates daily based on official settlement prices. If traders hold the contract until it expires, they receive the final payment in cash.

New Contracts’ Leverage and Trading Costs

According to Coinbase, some contracts will allow traders to use leverage. For context, users can trade up to 10x leverage on certain products like Bitcoin (BTC), Ethereum (ETH), and equity index contracts. Other products may allow 4x to 5x leverage. Trading fees are expected to be low, estimated at around 0.02% per contract.  However, additional exchange, clearing, and regulatory fees may still apply. The exchange warned that derivatives carry significant risks. 

The crypto exchange stated:

“Derivatives are complex and come with high risks due to leverage. You should consider whether derivatives are suitable for you, and seek professional advice if needed.” 

Meanwhile, eligible Coinbase users in supported countries can start trading futures by first opening the Derivatives section on Coinbase Advanced. Secondly, they must complete eligibility checks, which include identity verification and questions about trading experience. After which, they can fund their account using EUR or USDC to trade available futures contracts.

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