How to open a contract cooling-off period in Kraken

Kraken's contract cooling-off period provides an opportunity to cancel trades before execution, allowing users to re-evaluate potential risks and avoid impulsive decisions.

Nov 10, 2024 at 04:25 pm

How to Open a Contract Cooling-Off Period in Kraken

Kraken is a cryptocurrency exchange that offers a variety of trading features, including contract trading. Contract trading allows users to speculate on the future price of an asset without having to own the underlying asset. However, contract trading can also be risky, and it is important to understand the risks involved before you start trading.

One of the risks of contract trading is that you can lose more money than you initially invested. This is because when you trade contracts, you are essentially borrowing money from the exchange in order to make your trade. If the market moves against you, you will be required to pay back the borrowed money, plus interest.

In order to reduce the risk of losing money on contract trades, Kraken offers a contract cooling-off period. This period gives you the opportunity to cancel your trade before it is executed. To open a contract cooling-off period, you will need to:

1. Log in to your Kraken account.
2. Go to the "Trading" tab.
3. Select the contract you want to trade.
4. Click on the "Open Cooling-Off Period" button.
5. Enter the amount of time you want the cooling-off period to last.
6. Click on the "Open Cooling-Off Period" button.

Once you have opened a contract cooling-off period, you will not be able to execute the trade until the cooling-off period has expired. If you decide that you do not want to trade the contract, you can cancel the trade before the cooling-off period expires.

It is important to note that the contract cooling-off period is not a guarantee against损失. If the market moves against you during the cooling-off period, you may still lose money on your trade. However, the cooling-off period does give you the opportunity to reconsider your trade before you execute it.