Attention, crypto traders! A significant development is on the horizon for those using Coinbase platforms. Coinbase International Exchange and Coinbase Advanced have officially announced the upcoming launch of RESOLV perpetual futures trading.
What’s Happening with Coinbase and RESOLV?
Coinbase continues to expand its offerings for experienced traders. The latest addition is perpetual futures contracts for an asset known as RESOLV. This move was announced via the exchange’s official communication channels, signaling a clear date for when trading will commence.
The launch is scheduled for on or after 9:30 a.m. UTC on June 19, 2024. This new trading option will be available on two key platforms:
- Coinbase International Exchange: Geared towards institutional and non-US retail traders.
- Coinbase Advanced: Coinbase’s platform offering more sophisticated trading tools for retail users.
This Coinbase listing adds another instrument to the growing suite of derivatives products offered by the exchange.
Understanding Perpetual Futures in Crypto Trading
For those new to derivatives, understanding perpetual futures is crucial before engaging in this type of crypto trading. Unlike traditional futures contracts that have an expiry date, perpetual futures do not. They mimic the spot market price of an asset like RESOLV crypto while allowing traders to use leverage.
Here’s a simple breakdown:
| Feature | Spot Trading | Perpetual Futures |
|---|---|---|
| Ownership | Trade the actual asset | Trade contracts representing the asset’s price |
| Expiry Date | N/A (Immediate settlement) | None |
| Leverage | Typically none | Available (Allows trading with more capital than you hold) |
| Funding Rate | N/A | Periodic payments between long and short position holders to keep contract price near spot price |
| Profit/Loss | Based on price change of owned asset | Based on price change of contract, amplified by leverage |
The ability to use leverage is a primary draw for perpetual futures, as it can magnify potential profits. However, it also significantly increases the risk of liquidation, where your position is automatically closed at a loss if the market moves against you.
Why is This Coinbase Listing Significant?
The addition of RESOLV perpetual futures to Coinbase platforms indicates increasing demand for derivatives trading within the crypto market. For traders interested in RESOLV, this provides a new way to speculate on its price movements, potentially benefiting from both upward and downward trends using short positions.
This move by Coinbase International Exchange and Coinbase Advanced also signals the platform’s commitment to competing in the global crypto derivatives market, offering more complex trading tools alongside its core spot trading services.
Getting Ready for RESOLV Perpetual Futures
If you are considering trading RESOLV perpetual futures on Coinbase, here are a few actionable insights:
- Understand the Asset: Research RESOLV crypto itself. What is its use case? What drives its price?
- Learn About Futures: If you are new to futures, take the time to understand how they work, including leverage, margin, and funding rates.
- Assess Your Risk Tolerance: Perpetual futures are high-risk instruments. Only trade with capital you can afford to lose.
- Check Platform Availability: Ensure you have access to either Coinbase International Exchange (if outside the US) or Coinbase Advanced.
Conclusion: Expanding Trading Horizons
The upcoming launch of RESOLV perpetual futures on Coinbase International Exchange and Coinbase Advanced marks another step in the evolution of crypto trading on the platform. Scheduled for June 19, this Coinbase listing provides experienced traders with new opportunities to engage with the RESOLV asset using leverage. While the potential for amplified gains exists, it is paramount for traders to approach perpetual futures with a solid understanding of the risks involved. As the crypto market matures, the availability of diverse trading products like these becomes increasingly important for participants seeking more sophisticated strategies.
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