Cryptocurrency futures trading on Kraken allows you to capitalize on short-term price movements without owning the underlying assets. Futures are derivatives, offering benefits like high leverage, liquidity, and cashless trading. This guide covers everything from leverage and fees to step-by-step trading instructions.
What Are Kraken Futures?
Kraken futures are contracts enabling you to buy or sell an asset at a predetermined price on a future date. Unlike spot trading, futures remain in your exchange account until settled, streamlining transactions.
Key Features:
- Hedging: Offset losses in spot holdings by shorting futures during market downturns.
- Liquidity: Kraken’s derivatives volume exceeds $250 million daily.
- Versatility: Trade perpetual, monthly, quarterly, or semi-annual contracts.
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Kraken Futures Fees
Kraken uses a tiered fee structure based on 30-day trading volume:
| Tier | 30-Day Volume | Maker Fee | Taker Fee |
|------|--------------|-----------|-----------|
| 1 | <$100K | 0.02% | 0.05% |
| 8 | >$100M | 0.00% | 0.01% |
Note: Limit orders (maker) typically incur lower fees than market orders (taker).
Supported Assets and Contracts
Kraken offers futures for:
- BTC/USD, ETH/USD, LTC/USD, XRP/USD, and more.
- Timeframes: Perpetual, monthly, quarterly, and semi-annual (BTC/ETH).
How Kraken Futures Work
Account Setup
- Verify Your Account: Complete KYC (Intermediate level or higher).
- Access Futures: Navigate to the Futures Trading section via Kraken’s SSO.
Trading Mechanics
- Leverage: Up to 50x (varies by contract size).
Margin Requirements:
- Initial Margin: 2%–50% (based on margin level).
- Maintenance Margin: 1%–25% (prevents liquidation).
Step-by-Step Guide to Trading
- Create a Futures Account: Sign up here if new.
- Open Trading Terminal: Use Kraken’s dedicated futures interface.
- Select Pair/Contract: Choose from the Market Preview panel.
- Place Orders: Specify buy/sell, order type, and leverage.
- Monitor & Exit: Close positions via opposite orders to lock profits.
Leverage and Margin Tiers
Perpetual Contracts
| Level | Leverage | Initial Margin | Maintenance Margin |
|-------|---------|----------------|--------------------|
| 1 | 50x | 2% | 1% |
| 10 | 2x | 50% | 25% |
Funding Rates Explained
- Purpose: Align perpetual futures prices with spot prices.
- Frequency: Adjusted every 8 hours.
Direction:
- Positive: Longs pay shorts (bullish sentiment).
- Negative: Shorts pay longs (bearish sentiment).
Kraken Futures Brawl
Compete in 1v1 battles:
- Predict Price Movement: Choose 1- or 5-minute intervals.
- Match Opponents: Win if your prediction is correct.
FAQs
1. Is Kraken Futures safe for beginners?
Yes, but start with low leverage and use the demo platform.
2. What’s the minimum deposit for futures?
No minimum, but margin requirements apply (e.g., 2% for 50x leverage).
3. How are funding rates calculated?
Based on the gap between futures and spot prices, paid peer-to-peer.
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Conclusion
Kraken futures offer high leverage (up to 50x) and diverse contracts for strategic trading. Key tips:
- Use lower leverage to manage risk.
- Monitor funding rates and margin levels.
- Practice with demo accounts before live trading.
Ready to start? Sign up for Kraken Futures today.