How to open high-multiple contracts in Kraken

To begin trading high-multiple contracts on Kraken, users must first create an account, fund it, and enable futures trading on their respective accounts.

Nov 14, 2024 at 02:42 pm

How to Open High-Multiple Contracts in Kraken

Kraken is a leading cryptocurrency exchange that offers a wide range of trading options, including high-multiple contracts. High-multiple contracts are a type of derivative that allows traders to amplify their profits (or losses) by a predetermined multiple. This can be a lucrative way to trade, but it is also important to understand the risks involved.

Before You Start

Before you can open a high-multiple contract on Kraken, you will need to:

• [Create an account on Kraken](https://www.kraken.com/sign-up).
• [Fund your account with cryptocurrency or USD](https://help.kraken.com/hc/en-us/articles/360009242906-Funding-your-Kraken-account).
• [Enable futures trading on your account](https://help.kraken.com/hc/en-us/articles/4229424415979-How-to-apply-for-futures-trading-in-beta)

Step 1: Choose a Contract

Kraken offers high-multiple contracts on a variety of cryptocurrency pairs, including BTC/USD, ETH/USD, and LTC/USD. When choosing a contract, you should consider the following factors:

• The multiple: The multiple is the amount by which your profits (or losses) will be amplified. Higher multiples can lead to greater profits, but they also come with greater risk.
• The underlying asset: The underlying asset is the cryptocurrency that the contract is based on. You should choose an asset that you are familiar with and that you believe has potential for growth.
• The contract duration: The contract duration is the length of time that the contract will be active. You can choose from contracts that expire in hours, days, or months.

Step 2: Set Your Trading Parameters

Once you have chosen a contract, you need to set your trading parameters. These parameters include:

• The order size: The order size is the number of contracts that you want to buy or sell.
• The price: The price is the price at which you want to buy or sell the contracts.
  -The order type: The order type is the type of order that you want to place. There are two types of orders: market orders and limit orders. Market orders are executed immediately at the current market price, while limit orders are executed only when the price reaches a specified level.

Step 3: Place Your Order

Once you have set your trading parameters, you can place your order. To do this, click on the "Futures" tab at the top of the Kraken website. Then, select the contract that you want to trade and click on the "Buy" or "Sell" button.

Step 4: Monitor Your Order

Once you have placed your order, you can monitor it by clicking on the "My Orders" tab at the top of the Kraken website. This tab will show you all of your active orders, as well as their current status.

Step 5: Close Your Position

When you are ready to close your position, you can do so by clicking on the "Close Position" button on the "My Orders" tab. This will sell your contracts at the current market price and close your position.