The post Coinbase to offer pre-launch token options trading appeared on BitcoinEthereumNews.com.

Coinbase is launching a function on its international and advanced exchanges for users to trade futures contracts on tokens that are yet to launch. This launch will allow traders to participate in “pre-launch markets,” which are the price discovery of upcoming projects, all within Coinbase’s platform. Eligible traders can open long or short positions on an unlaunched token with up to 2x leverage, potentially leading to high returns.  Users will be able to buy and sell a token before its upcoming launch, even if the token launch date isn’t released yet. Institutional users have to use Coinbase International Exchange to participate in these pre-launch markets, while eligible retail traders can access them through Coinbase Advanced.  Pre-launch markets Pre-launch markets allow traders to trade perpetual futures contracts for tokens that have yet to launch. Once a project or underlying token is launched on relevant spot exchanges, these contracts transition into standard perpetual futures contracts on Coinbase. Pre-launch markets differ significantly from standard perpetual futures markets, carrying unique considerations and posing elevated risks. Exercise caution and don’t trade contracts unless you fully understand the associated risks. — Coinbase International Exchange 🛡️ (@CoinbaseIntExch) June 17, 2024 In futures trading, two parties agree to buy or sell a commodity, security, or asset at an agreed price and date in the future. These contracts are legally binding and are traded electronically on exchanges – in this case, Coinbase.  Risks of options trading, especially in pre-launch markets Users will exchange these futures contracts for tokens that are not yet available. The risk that the underlying token may never be launched is beyond Coinbase’s control. Furthermore, Coinbase may remove the tokens after they have officially been launched. “Please note that positions for pre-launch markets will not be assigned to participants of our Liquidity Support Program (LSP). As…

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Filed under: News - @ June 19, 2024 1:22 am