How to close Kraken leveraged trading

How to Close Kraken Leveraged TradingStep 1: Understand Leveraged Trading

Leveraged trading involves using borrowed funds to amplify potential profits. However, it also magnifies the risks associated with trading. Kraken offers leveraged trading options for various cryptocurrencies, each with specific trading conditions and margin requirements.

Step 2: Identify Your Open Leveraged Positions

To close a leveraged position, you first need to identify your open orders. Navigate to the "Margin Trading" section on Kraken's trading platform and click on the "Open Positions" tab. This will display a list of your current leveraged positions, including their size, leverage level, and current market value.

Step 3: Choose the Position to Close

Decide on the leveraged position you wish to close. Consider factors such as the current market price, your risk tolerance, and your profit/loss situation. Select the desired position from the list of open positions.

Step 4: Close the Position

Click on the "Close Position" button associated with the selected position. This will bring up a confirmation dialog box, where you will need to confirm the closure of the position.

Step 5: Enter the Closing Parameters

In the confirmation dialog box, you will need to specify the closing parameters. This includes:

• Quantity: Enter the amount of the position you want to close.
• Limit Price: Set a limit price at which the order will execute.
• Type: Choose the order type, such as market order or limit order.

Step 6: Execute the Closing Order

Once you have entered the closing parameters, click on the "Close Position" button to execute the order. Kraken will immediately submit your order to the market, and it will be filled at the specified limit price or better (for market orders).

Step 7: Confirm the Closure

After placing the closing order, monitor the order status in the "My Orders" section of Kraken's trading platform. Once the order is filled, the leveraged position will be closed, and the borrowed funds will be returned to your account.

Step 8: Revert to Standard Trading

Upon closing all leveraged positions, you will automatically revert to standard trading mode. This means that all subsequent trades will be executed using your own funds without any leverage.