Coinbase Derivatives Will Begin Trading Oil and Gold Futures
Date: 2024-05-21 Author: Gabriel Deangelo Categories: BUSINESS
Derivatives exchange Coinbase has announced a significant expansion of its offerings to include commodity futures such as oil and gold. The move is part of the company's strategy to provide clients with greater trading and risk management capabilities.
Trading Start Date
According to the official release, trading of the new futures contracts will begin on June 3, 2024. These innovations will allow traders to use the exchange not only for transactions with cryptocurrency derivatives, but also for trading futures for traditional commodities.
Main Activities
Despite the inclusion of new products, Coinbase Derivatives' core business remains digital asset futures contracts. However, the addition of oil and gold futures is part of a diversification strategy aimed at providing traders with new tools for hedging and risk management.
Regulation and Legality
Coinbase Derivatives emphasizes that it is fully regulated by the US Commodity Futures Trading Commission (CFTC), which ensures the legality and transparency of all transactions. The exchange operates under strict regulatory requirements, which guarantees security and reliability for its clients.
Characteristics of Contracts
The volume of new futures contracts is 10 barrels of oil and 1 troy ounce of gold. All settlements under these contracts will be made in US dollars, which ensures convenience and clarity for market participants.
History and Prospects
Coinbase Derivatives began operations in May 2023 and has been actively expanding the range of available products since then. In June 2023, the company included futures contracts for Bitcoin and Ethereum, as well as derivatives for Litecoin, Dogecoin and Bitcoin Cash.
The addition of oil and gold futures is the next step in the strategic development of the exchange, aimed at meeting the needs of its clients and strengthening its position in the derivatives market.
The addition of oil and gold futures to Coinbase Derivatives offers new opportunities for traders and investors. This allows you to not only diversify your portfolios, but also effectively manage risks using a wide range of tools available on one platform.
