Ten Cent ETH Out of the Question as Coinbase Launches Long Only Margins

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Summary

To avoid that, Coinbase is this time launching longs only margins, meaning you can only buy eth with borrowed money, you can’t sell it with borrowed eth. In addition in August they said institutional investors were sending $1 to $2 billion a month. Coinbase margins, Feb 2020You can borrow only up to 3x your collateral, so you can buy 32 eth with just $2,800, for a fee of 0.02% a day with the funds lent by Coinbase. That was due to margins with a fat finger market order creating a short calling cascade that made one lucky guy a millionaire after he managed to buy the eth at literally ten cent. So the wider availability of these margins for professionals might add some more liquidity in an upwards only direction and not at 10 cent this time.

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Ethereans got supper excited at the potential of buying eth for 10 cent, staking up bids all the way up to $1 dollar, after a glitch at Coinbase briefly sent it to that level back in 2017.

That was due to margins with a fat finger market order creating a short calling cascade that made one lucky guy a millionaire after he managed to buy the eth at literally ten cent.

To avoid that, Coinbase is this time launching longs only margins, meaning you can only buy eth with borrowed money, you can’t sell it with borrowed eth.

Coinbase margins, Feb 2020

You can borrow only up to 3x your collateral, so you can buy 32 eth with just $2,800, for a fee of 0.02% a day with the funds lent by Coinbase.

For individuals only 23 states are available, which does not include New York, they being:

FL, TX, IL, NJ, VA, GA, AR, AK, OR, CT, NH, MA, NE,...

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