Read the latest update on Coinbase’s filing to bring single-stock perpetual futures to the US market.
Frequently Asked Questions
FAQs Coinbase Files to Offer SingleStock Perpetual Futures in the US
1 What did Coinbase just do
It filed with US regulators for approval to offer perpetual futures tied to individual stocks to American traders
2 What are perpetual futures
Futures contracts with no expiration date You can hold a position as long as you want as long as you meet margin requirements
3 What does singlestock mean here
Each contract tracks one companys stocklike Apple or Teslainstead of an index or a basket of stocks
4 How is this different from regular stock trading
You dont own the stock Youre betting on its price with leverage and you settle in cashno shares change hands
5 How is this different from crypto perpetuals
The underlying asset is a stock not a cryptocurrency That means stockmarket hours dividends and equity regulations come into play
6 Is this legal in the US
Not yet Coinbase has filed for approval Perpetual futures on stocks dont currently exist in the US this would be a first if approved
7 Why is this a big deal
US traders have had no legal way to trade perps If approved it opens a huge new product category and could pressure other US exchanges to follow
8 Why does Coinbase want to offer these
To expand beyond crypto attract stock traders and capture revenue from a product thats already massive overseas
9 Who is this for
Mainly active traders who understand leverage and derivatives Its not aimed at buyandhold investors
10 Whats the main benefit
No expiration dates potential 247style trading leverage and easy shortingwithout borrowing actual shares
11 Can I short stocks with these
Yes You can take long or short positions just by choosing a direction
12 What leverage will be available
Not announced yet US regulators typically cap leverage far lower than offshore exchangesoften 2x to 10x for stocklinked products
13 How would pricing work
Via a funding rateperiodic payments between longs and shorts that keep the contract price near the stocks actual price