Introducing ETH as Cross Collateral for Derivatives Trading

Today, we’re thrilled to announce the immediate availability of ETH as collateral when trading derivatives using Gemini’s cross collateral feature.

This means that while Gemini’s perpetual contracts are denominated in Gemini Dollars (GUSD), customers who enable cross collateral will now be able to use ETH, in addition to BTC and GUSD, as collateral to trade perpetual contracts - providing more flexible funding options.

What is Cross Collateral?

When trading derivatives, you are required to deposit funds, known as collateral, in order to open and maintain derivatives positions. The collateral required to open a position is your Initial Margin. The collateral required to keep your position open is known as Margin maintenance limit, and the total amount of collateral available for trading is your Margin Assets Value.

To learn more about margin, check out our article: Gemini Foundation Academy: Understanding Margin and Leverage.

Collateral serves as a buffer to cover potential losses in the event that your position moves against you. You are required to hold sufficient collateral to meet margin requirements, and keep in mind that collateral assets are at risk of liquidation if margin requirements are not met.

With the cross collateral feature, you can now use BTC and ETH, as collateral for your trades. More assets for cross collateral will be introduced soon.

Even if you don't have cross collateral enabled, you can still easily fund your derivatives account on Gemini. Simply transfer SGD, USD, or USDC into your derivatives account, and the funds will automatically be converted to GUSD - offering you flexible funding options to suit your needs.

How to Open a Derivatives Account

If you have yet to create a Gemini account and reside in a derivatives-enabled jurisdiction, sign up for an account here to receive both a spot and derivatives trading account.

For current Gemini spot users in derivatives-enabled jurisdictions, follow the steps below to activate your derivatives account today.

1. Log on via desktop or mobile web browser
2. Select the Account drop-down list at the top left of your screen
3. Select “Activate Now” next to the Derivatives Account option to begin the activation process
4. Read and accept the derivatives-specific terms and conditions
5. Transfer GUSD,BTC, or ETH to your derivatives account
6. Start trading!

Stay tuned for more updates and features to elevate your derivatives trading experience.

Onward and Upward,

The Gemini Foundation Team