Kraken futures platform tutorial for beginners

What Are Kraken Futures?

Kraken Futures is a regulated derivatives trading platform operated by Kraken, a well-established cryptocurrency exchange. It allows traders to speculate on the future price of digital assets like Bitcoin (BTC), Ethereum (ETH), and other major cryptocurrencies using perpetual and quarterly futures contracts. Unlike spot trading, futures let you go long (betting prices will rise) or short (betting prices will fall), offering flexibility in both bullish and bearish markets. For beginners, understanding how these contracts work is essential before placing any trades.

How to Access Kraken Futures

To begin using Kraken Futures, you must first have a verified Kraken account.

• Navigate to [futures.kraken.com](https://futures.kraken.com) and log in with your Kraken credentials.
• If you haven’t already, complete identity verification (KYC) on the main Kraken platform—this is mandatory.
• Once logged in, you’ll see a clean interface with order books, charts, and position management tools.
• Click the “Deposit” button to transfer funds from your Kraken spot wallet to your futures wallet. This transfer is instant and free within the same account. Make sure your futures wallet has sufficient margin in USD or crypto (like USDC or BTC) to open positions.

  Understanding Key Terms in Kraken Futures

  Before placing a trade, familiarize yourself with these essential terms:
• Leverage: This amplifies your exposure using borrowed funds. Kraken offers up to 50x leverage on some pairs. For example, with 10x leverage, a $100 deposit controls a $1,000 position.
• Margin: The collateral you must post to open and maintain a position. Initial margin opens the trade; maintenance margin keeps it open.
• Mark Price: A fair price derived from multiple exchanges to prevent manipulation—used for liquidations.
• Liquidation Price: If the mark price hits this level, your position is automatically closed to prevent further losses.
• Funding Rate: Paid or received every 8 hours in perpetual contracts—it balances long vs. short interest.

  Knowing these terms helps avoid unexpected losses or forced closures.

  Step-by-Step Guide to Opening a Futures Trade

  Let’s say you want to go long on BTC/USD with 5x leverage:
• Select the BTC/USD perpetual contract from the trading pairs list.
• Choose “Limit” or “Market” order type based on whether you want to set a specific entry price or trade immediately.
• Enter the contract size (e.g., 0.1 BTC).
• Set your leverage using the slider or input field—5x in this case.
• Review the estimated margin required and liquidation price shown on the right panel.
• Click “Buy” to open the long position. Your open position will appear under the “Positions” tab, where you can monitor unrealized PnL, entry price, and liquidation level in real time.

  Managing Risk and Closing Positions

  Risk management is crucial in futures trading:
• Always set a stop-loss by placing a conditional order that exits the trade if price moves against you.
• Avoid using maximum leverage—it increases liquidation risk dramatically.
• Monitor your liquidation price constantly—especially during high volatility.
• To close a position manually, go to the “Positions” tab, click “Close,” and confirm the action.
• Alternatively, place an opposite order (e.g., sell the same amount you bought) to fully or partially exit. Kraken also allows partial closes—you don’t have to exit the entire position at once.

  How to Check Funding Payments and Fees

  Funding payments occur every 8 hours (00:00, 08:00, 16:00 UTC):
• If you’re long and the funding rate is positive, you pay shorts. If negative, you receive payment.
• These are shown in your “Account” → “Funding History” tab.
• Trading fees are tiered based on 30-day volume and range from 0.02% (maker) to 0.05% (taker).
• Margin fees do not apply unless you hold a position during funding intervals. Always check the fee schedule in the “Fees” section of Kraken Futures to understand your cost structure.

  Frequently Asked Questions

  Q: Can I trade Kraken Futures without a Kraken spot account?No. You must have a verified Kraken spot account to access Kraken Futures. Funds are transferred internally between wallets, so no external deposits are needed once you’re set up.

  Q: What happens if my position gets liquidated?If the mark price hits your liquidation level, Kraken automatically closes your position to prevent negative equity. You lose the initial margin, but no additional funds are taken from your account—Kraken uses an auto-deleveraging (ADL) system only in extreme cases.

  Q: Is there a minimum deposit to start trading futures on Kraken?There’s no fixed minimum, but you must have enough margin to meet the initial requirement for the contract you’re trading. For example, opening a 0.01 BTC/USD position at 5x leverage may require as little as $20–$30 depending on BTC’s price.

  Q: How do I switch between USD and crypto margin modes?In the settings or account section of Kraken Futures, you can toggle between “Cross” (uses all assets as margin) and “Isolated” (margin tied to specific positions). You can also choose whether to use USDC, BTC, or ETH as collateral—this affects your liquidation risk and funding dynamics.