While trading with leverage can provide increased buying power and enhanced returns, it is also important to keep in mind that it also magnifies the potential losses and increases the risk of your position. However, you should be aware that NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. You should only trade in financial products that you are familiar with and understand the associated risks, and after carefully considering whether such trading is suitable in light of your investment experience, financial position, and investment objectives. The risk of loss using leverage can exceed your initial investment amount. Disclaimer: Trading in futures involves substantial risks. Educate yourself on the market and the terms and conditions associated with any offered leverage before making a trade. Leverage in futures trading can work for you or against you. Futures products and services on Coinbase Advanced are offered by Coinbase Financial Markets, a member of NFA and is subject to NFA’s regulatory oversight and examinations.

If your balance dips below the maintenance margin, your position(s) can be liquidated. And if your goal is to avoid liquidation, you will want to keep an eye on the value of your account, which can fluctuate with movements in the prices of the futures contracts that you hold, and ensure that it stays above the maintenance margin. If the initial margin is the amount of funds you need to open a position, the maintenance margin is the amount of funds you need for your position(s) to remain open. Maintenance margins are typically lower than initial margins, however the exact amount can vary as it is set by the exchange.

Crypto Trading Platform Gemini

Leverage gives traders the ability to trade larger value contracts while putting down relatively smaller amounts upfront. This provides traders with greater efficiency for their capital. While spot trading of crypto using margin is prohibited in the United States for most investors, derivatives offer investors an alternative path for trading with leverage. Leverage can help magnify your gains from trading, but it’s also important to understand that leverage also amplifies your potential losses. Also allows them to increase their exposure without needing additional capital.

0.4%. But for now at least, the Fed hasn’t been too alarmed, and Chair Powell said last week that “ it is too soon to say whether the recent readings represent more than just a bump.” So this week’s releases will be in focus, as a third month of stronger inflation would make it harder to dismiss as a temporary move higher. 3.7%. In the meantime, it’s clear that markets are becoming more concerned about the issue, and last week saw the US 2yr inflation swap close at its highest since October, at 2.54%. For more on this week’s CPI report, see the full preview from our economists here, along with how to sign up for their webinar.