How to close a contract in Kraken

How to Close a Contract in Kraken

Step 1: Navigate to the Contracts Section

Begin by logging into your Kraken account and clicking on the "Futures" tab. This will take you to the dashboard for futures contracts trading on Kraken.

Step 2: Select the Contract You Wish to Close

Locate the specific contract you want to close under the "Positions" section. Alternatively, you can use the search bar to find the contract based on its ticker symbol. Once identified, click on the contract to view its details.

Step 3: Choose the "Close Position" Option

On the contract details page, scroll down to the "Actions" section and select the "Close Position" option. This will open a confirmation dialog box.

Step 4: Confirm the Closure Details

In the confirmation dialog box, carefully review the details of the closure. Ensure that the contract, quantity, and price are correct. You can also add a comment to the closure if desired.

Step 5: Execute the Closure

Once you have verified the closure details, click on the "Close Position" button to complete the process. Kraken will immediately close the contract at the prevailing market price.

Step 6: Monitor the Closure Status

After executing the closure, you can track its status under the "Orders" tab. Look for the "Closed Position" order to ensure that the contract has been successfully closed.

Additional Considerations

• Partial Closure: You can partially close a contract by entering a quantity less than the total contract size. The remaining portion of the contract will continue to stay open.
• Fees: Closing a contract incurs a small fee. Kraken's fee schedule for futures contracts can be found on the platform.
• Market Conditions: Market conditions can affect the price at which your contract is closed. Consider prevailing market trends and volatility before executing the closure.
• Stop-Loss and Take-Profit Orders: You can place stop-loss or take-profit orders to automatically close your contract at predetermined price levels. This can help you manage risk and lock in profits.
• Tax Implications: Closing a contract can have tax implications depending on your jurisdiction. Consult with a tax professional to understand the tax consequences of your trades.