Key Takeaways
- To get started with how to trade futures on Coinbase, understand margin requirements, order types, and supported trading interfaces;
- Coinbase Futures and Perpetual Futures fees vary by contract type and trading volume;
- Practicing sound risk management and staying informed about account alerts can help reduce liquidation risk and lead to more sustainable futures trading.
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You might already be using Coinbase to buy or sell crypto, but there’s more waiting behind the Advanced tab. Futures on Coinbase Advanced is built for experienced traders who want deeper tools and broader access. So, if you’ve been wondering how to trade futures on Coinbase, this article walks through the full experience.
To lay out the groundwork, it’s not only about leverage or speculation. Futures give active traders more control in volatile markets, and Coinbase brings that into a tightly regulated platform.
So, can you trade futures on Coinbase? Absolutely! Let’s walk through the process and why the feature has become a go-to tool for active traders.

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Table of Contents
- 1. How to Start Trading Futures on Coinbase
- 1.1. Create or Upgrade a Coinbase Advanced Account
- 1.2. Deposit & Fund Your Futures Account
- 1.3. Manage Risks via Order Types
- 1.4. Close the Futures Position
- 2. Understanding Your Coinbase Futures Account
- 2.1. How Your Funds Are Protected
- 2.2. Futures Balance Overview
- 3. Trading Perpetual Futures on Coinbase
- 3.1. Getting Started With Coinbase Perpetual Futures
- 3.2. Margin Balances and Funding
- 3.3. Perpetual Futures Orders and Interface
- 3.4. Liquidation and Risk Management
- 4. Key Considerations Before Trading Futures on Coinbase
- 5. Conclusions
How to Start Trading Futures on Coinbase
Coinbase Advanced offers experienced traders enhanced access to advanced tools and greater control over their trading strategies.
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For those asking, “What is futures trading on Coinbase?”, it refers to the ability to speculate on the price movement of crypto assets using leverage, without directly owning the underlying tokens. This approach allows traders to hedge, amplify potential gains, or manage market exposure with more precision.
More importantly, you can trade regulated futures through Coinbase Financial Markets (CFM), a secure, compliant, and high-performance environment.
Coinbase Futures in the US are available to legal residents with a verified spot account. To apply, you must have a US address and either a Social Security Number or an Individual Taxpayer Identification Number.
When you are temporarily traveling abroad, Coinbase Futures US will still be available as long as your residency details remain active in your account profile.
With that in mind, let's explore how to trade futures on Coinbase, from setup to execution. Here are the key actions you need to take:
1. Create or Upgrade a Coinbase Advanced Account
Can you trade futures on Coinbase without making any changes to your regular account? The answer is a definite no.
As mentioned earlier, futures trading is only available through Coinbase Advanced. If you haven’t upgraded yet, you’ll need to enable Advanced mode and unlock the Futures tab by completing identity verification.
Here’s how to create a Coinbase account:
Once your base account is ready, upgrading to Coinbase Advanced doesn’t require a separate sign-up. Access it directly by visiting the Coinbase Advanced dashboard.
📚 Read More: Is Coinbase Safe?
To get started, here’s how to activate futures trading on your account:
Note that taker fees apply when your order is filled immediately at market price, while maker fees apply when your order rests on the book and adds liquidity. Some orders may even be split, with a portion paying the taker fee and the remainder the maker fee when matched.
📚 Read More: A Guide to Coinbase Fees
2. Deposit & Fund Your Futures Account
Before placing a futures trade, your account must be funded. Coinbase routes all cash through your spot wallet, then automatically moves it into your futures account to meet margin requirements. This process works in the background, but it all begins with your first deposit.
To connect a bank account:
- Bank Account (ACH). Use your linked bank account from your Coinbase spot wallet. ACH transfers take 3–5 business days.
- Cash (USD Balance). Use available cash already sitting in your Coinbase spot account for instant funding.
- Wire Transfer. Initiate a FedWire (not ACH) from your bank. Wire processing typically takes 1–3 business days.
Wires must be sent from your country of residence using FedWire only. Otherwise, transfers made through ACH, overnight, or next-day services will be rejected.
Once your bank account is connected, proceed with adding cash to your account:
With your funds in place, you’re ready to explore the trading interface and set your first futures position.
Funding your trading balance with USDC lets you earn up to 4.1% in rewards, including on partially filled or unfilled orders. Reward rates may vary by region and are automatically activated when you purchase USDC.
3. Manage Risks via Order Types
Before diving into order types, it's essential to understand how margin ratios work. These are the percentages calculated by dividing the maintenance margin requirement by your total margin funds.
When there are no positions open, the margin ratio remains at 0%. Once you enter a position, part of your funds is held as margin. If the market moves against your position and your margin balance drops below the maintenance margin, liquidation occurs.[1]
Here's how margin ratio statuses work:
Margin Ratio | Details | |
---|---|---|
Low Risk | 1%-79% | Portfolio is within safe limits |
Warning | 80%-89% | The risk of liquidation is increasing |
Danger | 90%-99.99% | Critical risk of liquidation |
Liquidation | 100% | Positions being liquidated |
Table: Margin ratio status guide
To reduce your risk, you can add margin funds or close positions. Also, use risk management order types, covered below.
Market Order
A market order executes instantly at the best available price. It can’t be cancelled once placed and may fill in parts across several prices. To place a market order:
Market orders on non-stablecoin pairs include a 10% price impact safeguard. If the trade exceeds that threshold, the system halts execution and only fills the portion within the limit.
Limit Order
Limit orders execute only at your set price or at a better price. You can also set expiration and execution conditions.
To configure a limit order:
- MID: Sets to mid-market.
- BID: Sets to current bid price.
- 1% or 5%: Sets a percentage off the competitive price.
Buy limit price must be at least 75% of the Best Bid. Meanwhile, the sell limit price cannot exceed 900% of the Best Ask.
Stop-Limit Order
A stop-limit order posts a limit order once a stop price is reached. It helps protect gains and minimize losses. To place a stop-limit order:
All done! However, do note that stop-limit orders may be triggered instantly if the stop price has already been reached.
Bracket Order
Bracket orders combine Take-Profit and Stop-Loss levels. Only one side executes (whichever is triggered first) while the other is cancelled. To set one up:
As a final note, stop loss orders may not execute at your intended price during periods of high volatility. Rapid price movements can lead to slippage, so it’s important to remain vigilant and adjust your position as necessary.
Take Profit/Stop Loss (TP/SL) Order
TP/SL orders are protective orders attached to a main order. They activate only after the main order is completely filled. Here's how to use them:
That’s all it takes to attach a stop-loss and take-profit to your futures on Coinbase. With these tools, you can automate your exits, lock in gains, and limit downside without having to watch the screen every second.
TWAP Order
A Time-Weighted Average Price (TWAP) order splits large orders into smaller trades to avoid slippage. It helps match the average market price over time. To place a TWAP order:
After placing your TWAP order, monitor its progress through the [% Filled] tab on the Order Management page.
TWAP orders are cancellable while open. For futures, orders pause during market closures and resume afterward.
4. Close the Futures Position
Once a futures contract reaches its expiration date, Coinbase automatically closes your position at the exchange’s settlement price. However, you don’t have to wait until expiry as positions can be closed manually at any time.
There are several ways to close a position:
1
On the [Portfolio] page, hover over an active position. When an [X] appears, click it to trigger the close button.
2
Click on the contract name (for example, from the portfolio list), then select the [Close position] button.
3
Head to the [Positions] screen under the Futures tab and click [Close] next to the position.
Closing a position manually helps lock in profits, limit losses, or free up margin. Before confirming, review your unrealized PnL and margin ratio to ensure it's the right move.
Understanding Your Coinbase Futures Account
You’ll see Coinbase Futures explained more clearly once you understand how the exchange separates your funds, calculates your balances, and applies margin requirements. But what does that actually look like on your account page, and what happens if your equity drops below margin levels?

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How Your Funds Are Protected
Assets held in your CFM futures account are segregated from Coinbase Financial Markets’ own corporate funds. This segregation is required under CFTC Rule 1.20 and is designed to safeguard customer assets, even in extreme scenarios.
If CFM were ever to file for bankruptcy, customer funds in futures accounts would still be protected under CFTC regulations, including Part 190 of the bankruptcy code.
By contrast, spot trades go through your Coinbase Inc. (CBI) account, which operates under the Coinbase Inc. User Agreement. CBI is not regulated by the CFTC, and it's not a member of the NFA.
Therefore, it does not provide the same level of customer protection. It’s licensed as a money transmitter under Coinbase US in many states, but that’s not the same regulatory framework that covers futures.
📚 Read More: Coinbase Review
Futures Balance Overview
The Futures Balance screen gives you a snapshot of your account’s health. It shows how much cash you have available, what’s tied up in trades, and how much room you have left before hitting margin limits.
Here's a breakdown of the key terms you’ll see:
CFM Futures USD | The amount of cash sitting in your CFM futures account at the start of the day. This includes any cash moved in from your CBI spot account and cash from previously settled trades. |
Futures PnL | Your total profit and loss (both realized and unrealized). This includes gains or losses on open positions and any daily PnL that hasn’t yet settled as cash. |
Total Equity | The total value of your CFM futures account, calculated by adding your cash balance to your current PnL. |
Initial Margin Required | The amount of margin needed to hold your current futures positions. |
Excess (or Deficit) | ✓ A positive number means you’ve got extra funds available in your CFM account. ✓ A negative number means your total equity has dropped below the required margin. |
Table: CFM futures equity & margin breakdown
When you're in deficit, cash from your CBI spot account may be held to help cover the shortfall. That doesn't automatically mean you'll be liquidated or owe money to Coinbase, but it's a signal that your futures positions are under pressure.
Trading Perpetual Futures on Coinbase
After covering Coinbase’s US-regulated futures, it’s worth pointing out that it also operates a separate track: perpetual futures for non-US users. These appear in the same Coinbase Advanced dashboard but are powered by the Coinbase International Exchange.
Getting Started With Coinbase Perpetual Futures
Due to regulatory requirements, users must reside in eligible regions outside the US to trade perpetual futures on the platform. If you're currently in an eligible region, here's how to begin:
Once approved, you can start trading with up to 20x leverage, depending on the contract. Positions never expire and remain open as long as your margin requirements are met.
Each contract trades at all hours, and all are USDC-settled linear perpetuals. This includes high-volume markets, like Dogecoin futures on Coinbase, which track the price of DOGE in real-time.
Max. Leverage | Margin Requirement | Default Initial Margin (DIM) | Min. Order Size | |
---|---|---|---|---|
Bitcoin | 20x | 5% | 20% | 10 USDC |
Ethereum | ||||
Solana | 25% | |||
Dogecoin |
Table: Sample perpetual contracts on Coinbase
All contracts are designed to stay in sync with their respective spot markets, allowing you to manage exposure with smaller upfront capital.
Coinbase has also introduced the COIN50 index perpetual, which tracks the performance of 50 major assets on the platform. This single contract provides diversified exposure to the broader crypto market.
Should you travel to an ineligible region, your account will be switched to view-only mode. You won’t be able to open or close positions, but your funds and open trades will remain secure. In the case of a permanent move to an ineligible country, you’ll need to contact Coinbase Support for assistance.
If you're not in an eligible region yet, you can still express interest:
- Visit the Perpetual Futures Overview page.
- Submit your contact information, and Coinbase will notify you if/when the feature becomes available in your region.
While the Perpetual Futures mentioned above are only available to non-US users, Coinbase is also preparing a separate solution for US traders.
Starting July 21, 2025, US traders will also gain access to Perpetual-Style Futures through Coinbase Derivatives Exchange. These are long-dated contracts with expirations up to five years.
This program is designed to mirror the structure of global perpetuals, including 24/7 trading and a funding rate mechanism that helps keep prices in line with the spot market.
The initial contracts include nano Bitcoin at 0.01 BTC and nano Ether at 0.10 ETH, offering regulated exposure with more flexibility in position sizing and capital efficiency.
Margin Balances and Funding
To trade perpetual futures on Coinbase Advanced, you'll need to fund your Perpetuals portfolio. This portfolio is separate from the Default one and is used exclusively for perpetual futures trading.
To buy USDC:
Isolated margin positions on Coinbase only accept USDC as collateral. For cross-collateralized markets, like Coinbase Bitcoin futures, BTC and ETH may also be used to support your margin, depending on the market.
To buy BTC or ETH (accepted as collateral):
Once your Default portfolio is funded, here's how to transfer collateral to your Perpetuals portfolio:
No fees apply to these internal transfers, though you may not be able to transfer your entire balance due to open orders, margin requirements, or held funds.
Perpetual Futures Orders and Interface
On Coinbase Advanced, you can trade perpetual futures using Limit, Market, Stop-Limit, and Bracket Orders. Each contract supports up to 20x leverage, and you’ll have the option to use cross margin or isolated margin, depending on your risk appetite and trading approach.
- Cross Margin. Spreads collateral across multiple positions to reduce the risk of margin calls. Best for traders managing multiple trades simultaneously.
- Isolated Margin. Keeps collateral limited to a single position. Ideal for short-term or highly leveraged trades.
When placing a new order, some funds may appear as “on hold”. These include collateral for open positions or pending orders and aren’t available for new trades or withdrawals. You can free these funds by canceling the related order or closing an open position.
To place an order:
If a limit order fails to execute, it means the specified price hasn’t been met. Errors on failed orders will be displayed immediately or shown in the Order Blotter section.
To cancel an order:
After you've submitted or managed your orders, keep an eye on your overall trading performance. Coinbase provides a perpetual portfolio view to help you track everything from available margin to open positions and unrealized gains.
If you need to make changes to an open order, go to the Open Orders panel on the trading dashboard. Select the order, then choose [Edit order] to adjust the amount or price point.
Your Perpetuals portfolio offers a consolidated view of:
- USDC holdings;
- Open positions;
- Unrealized PnL;
- Margin health;
- Gains or losses;
- Total portfolio balance.
To access it, select [Portfolio] from the left sidebar and choose [Perpetuals].
On each Coinbase perpetual futures market page, the Liquidation Buffer widget sits on the right-hand side. It tracks how far your margin level is from triggering liquidation. Select the modal to expand and view more detailed metrics.

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Liquidation and Risk Management
Trading perpetual futures with leverage can magnify both gains and losses. As market conditions shift, the collateral in your portfolio must meet minimum thresholds to maintain open positions.
When the value of your position declines and your margin balance drops below the required maintenance level, liquidation is triggered to prevent negative balances.
Coinbase Perpetual Futures uses a multi-stage liquidation waterfall to manage risk across the platform:
Pre-Liquidation | ✓ Collateral serves as a cushion when your position moves unfavorably. ✓ Liquidation won’t occur as long as your current margin stays above the maintenance threshold. ✓ If your margin drops too close to the threshold, your position becomes vulnerable to liquidation.[2] |
Automatic Partial Liquidation | ✓ If your current margin falls below the maintenance level but stays above the close-out margin, Coinbase will trigger a partial liquidation. ✓ Partial liquidation helps limit further losses while allowing a portion of the trade to remain open. |
Liquidity Support Program (LSP) | If the current margin falls below the close-out level, the remaining position is transferred to LSP participants who absorb the risk in exchange for incentives. |
Insurance Fund | Should LSP capacity run out, the Insurance Fund steps in to handle liquidations and protect system stability. |
Auto-Deleveraging and Clawbacks | In rare cases, residual risk may still remain. At this stage, the system automatically matches liquidated positions with opposing traders to neutralize exposure. |
Table: Liquidation stages on Coinbase Futures
Coinbase also tracks your portfolio’s risk level using a liquidation buffer, expressed as a percentage between 0% and 100%. This value reflects how much margin you currently have versus what’s required.
- 0% indicates your margin has fallen to the maintenance level.
- 100% represents full coverage of your portfolio’s initial margin.
- An over 100% ratio suggests overcollateralization, especially when additional USDC is held in the account.
When the buffer falls below specific levels, you’ll receive risk alerts in the Advanced Trading interface and by email:
Warning | Below 80% |
Danger | Below 20% |
Liquidation triggered | At 0% |
Table: Collateral buffer warning levels
As part of Coinbase's risk management system, perpetual futures and crypto collateral are liquidated together when necessary.
Crypto collateral is handled using a randomized process to prevent manipulation. Adding eligible collateral to your portfolio automatically enables Cross Collateral, offering extra margin protection across multiple positions.
Key Considerations Before Trading Futures on Coinbase
Taking the leap into futures trading comes with its own set of risks and responsibilities. While this guide walks through the mechanics of how to trade futures on Coinbase, it’s just as important to weigh a few critical considerations that can shape your experience and protect your capital.
Keep these five points in mind before placing your first trade:
- Account Eligibility Varies by Location. As of writing, Coinbase Futures are currently limited to eligible US customers, while Coinbase Perpetual Futures are designed for select regions outside the United States. Your account type and available contracts will depend on your jurisdiction.
- Coinbase Futures Fees Can Affect Short-Term Performance. Maker-taker fees and funding rates can add up quickly, especially in high-frequency or leveraged trades. Reviewing the latest fee schedule in the Advanced Trade interface can help you plan trades more efficiently.
- Leverage Can Amplify Both Profits and Risks. Futures contracts on Coinbase allow up to 20x leverage, depending on the asset and margin type. It's worth balancing the appeal of larger gains with the very real possibility of liquidation during sudden market shifts.
- Collateral Requirements Differ Across Products. Coinbase Perpetual Futures only accepts USDC as collateral for isolated margin positions. Meanwhile, certain accounts may support BTC or ETH when using cross margin. Each collateral type can influence how you manage risk and position sizing.
- Order Execution May Depend on Market Depth. Some contracts, especially for lesser-traded assets, may have thinner order books. That can affect order execution, cause slippage, or delay fills (especially for market orders). Monitoring the Order Blotter and setting limit orders can give you more control over entry and exit prices.
With Coinbase Futures explained in practical terms, traders can approach the platform with clearer expectations and better strategies.
Conclusions
Taking time to learn how to trade futures on Coinbase can ease much of the initial pressure that comes with leveraged trading. By gradually understanding how funding, margin requirements, and liquidation rules work together, you can approach the platform with more confidence and control.
Depending on your region, you’ll either access US-based Coinbase Futures or the global Perpetual contracts. Each version comes with its own structure, risk model, and trading pairs. With that in mind, gaining clarity around what is futures trading on Coinbase can help you sidestep common mistakes and recognize which product fits your goals best.
No matter your pace, Coinbase Advanced makes futures trading feel more manageable. It's built to support smarter decisions with clear tools and a layout built for confident, stress-free trading!
The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.
Scientific References
1. Hedegaard, E.: ‘Causes and Consequences of Margin Levels in Futures Markets’;
2. Sampaio, D. M.: ‘Evaluating Fee Structures in Oracle Pricing Perpetual Futures Decentralized Exchanges: An Agent-Based Modelling Approach’.