US crypto trading platform Coinbase is disabling its margin trading service due to the recommendations of the US Commodity Futures Trading Commission (CFTC).
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According to Coinbase, the margin trading service will be completely removed from the platform in December, along with the expiration of all existing positions. As of November 25, clients will no longer be able to open new margin positions, while active limit orders will also be closed.
Trading with margin or leverage allows users to use leveraged funds in order to increase the size of positions, resulting in greater gains or losses.
Coinbase started to offer margin trading in early 2017 on the GDAX exchange, which was later renamed Coinbase Pro. In October of that year, the feature was disabled.
However, the exchange re-launched the service in February this year on Coinbase Pro. Coinbase said:
"We believe clear, common sense regulations for margin lending products are needed to protect and provide peace of mind to US customers. We look forward to working closely with regulators to achieve this goal."
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