Coinbase launches Gold and Silver perpetual futures trading
- Coinbase has listed Gold and Silver perpetual futures accessible to eligible non-US traders.
- Institutional and retail traders can trade the Gold and Silver contracts 24/7, with up to 25x maximum leverage.
- Gold and Silver prices rebound as renewed optimism surrounding a potential US-Iran peace agreement boosts market sentiment.
Coinbase (COIN) announced on Wednesday that Gold (XAU) and Silver (XAG) perpetual futures contracts have been listed for trading. The offering, which will be available around the clock to both institutional and retail traders, is available to eligible non-US traders.
Coinbase lists Gold and Silver futures with 25x maximum leverage
Coinbase stated in the press release that the Gold and Silver “derivatives are designed to make 24/7 commodity exposure as accessible and capital‑efficient as trading crypto perps.”
GOLD-PERP is a linear perpetual futures contract referencing spot 1 troy ounce of the yellow metal. Similarly, SILVER-PERP is a linear perpetual futures contract referencing 1 spot troy ounce of Silver.
Perpetual contracts do not have an expiry or rollover and are settled in USDC. The profit and loss (PnL) on these contracts is realized directly in USDC.
Traders will have up to 25x maximum leverage, with institutional-grade risk controls. Perpetual futures are also designed to lower the barrier to entry, with low minimum order sizes that allow traders to scale in and out around macro events.
Coinbase said it is working with the Commodity Futures Trading Commission (CFTC) to enable round-the-clock trading and align with the nature of crypto markets.
Coinbase is a leading cryptocurrency exchange in the United States (US), with daily trading volume of over $2 billion, according to CoinGecko data.
Gold and Silver Price rebound
Gold prices rebounded on Wednesday, reaching highs above $4,700, amid optimism that the US and Iran were making “great progress” toward a final peace agreement, said US President Donald Trump. Silver price also showed strength, rebounding above $77.
Meanwhile, President Trump has temporarily paused “Project Freedom,” a military-led mission launched by the government on Monday to restore traffic in the Strait of Hormuz by breaking the Iranian blockade.
As the market digests these advances, the interplay between geopolitical developments and risk sentiment will continue to shape price action for both Gold and Silver.
Open Interest, funding rate FAQs
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
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