Coinbase Launches Perpetual Futures Trading with Up to 50x Leverage

Coinbase has launched perpetual futures trading in its Base App, giving eligible users up to 50x leverage across crypto and tokenized equity markets. The feature is powered by Hyperliquid's decentralized derivatives exchange technology.

This move could lead to increased volatility in the market as smaller sums of capital can make larger impacts relative to a crypto's market cap.

The launch of perpetuals on Coinbase comes with risks, such as automatic liquidation when a trader's position is at risk of being margin-called. This means that if a trader experiences a drop in price and their leverage is too high, they could lose the entire margin backing their position.