How to operate Kraken perpetual contract

Perpetual contracts, offered by Kraken, enable traders to speculate on an underlying asset's future price indefinitely, making them favorable for long-term position holders.

Nov 13, 2024 at 05:11 am

How to Operate Kraken Perpetual Contract

Perpetual contracts, also known as perp contracts, are a type of derivative contract that allows traders to speculate on the future price of an underlying asset without a fixed expiry date. They are similar to futures contracts, but with the key difference that they do not expire and can be held indefinitely. This makes them ideal for traders who want to maintain a position over a longer period of time.

Kraken is one of the leading cryptocurrency exchanges that offer perpetual contracts. In this guide, we will show you how to operate Kraken perpetual contract.

1. Open a Kraken Account

The first step is to open a Kraken account. You can do this by visiting the Kraken website and clicking on the "Sign Up" button. You will need to provide some personal information, such as your name, email address, and phone number. You will also need to create a password.

Once you have created an account, you will need to verify your email address and phone number. You can do this by clicking on the links that Kraken will send you.

2. Deposit Funds

Once your account is verified, you will need to deposit funds in order to trade perpetual contracts. Kraken accepts a variety of deposit methods, including bank transfers, credit cards, and cryptocurrencies.

To deposit funds, click on the "Funding" tab at the top of the Kraken website. Then, select the deposit method that you want to use. Follow the instructions on the screen to complete the deposit process.

3. Find a Perpetual Contract

Once you have deposited funds into your account, you can start trading perpetual contracts. To find a perpetual contract, click on the "Trade" tab at the top of the Kraken website. Then, select the "Perpetual" tab.

You will see a list of all of the perpetual contracts that are available on Kraken. You can filter the list by asset, margin, and leverage.

4. Place an Order

Once you have found a perpetual contract that you want to trade, you can place an order. To do this, click on the "Buy" or "Sell" button.

A pop-up window will appear. In the pop-up window, you will need to specify the quantity of the contract that you want to buy or sell, the price that you want to execute the order at, and the type of order that you want to place.

5. Monitor Your Position

Once you have placed an order, you can monitor your position by clicking on the "Positions" tab at the top of the Kraken website.

In the "Positions" tab, you will see a list of all of your open positions. You can view the current price of the underlying asset, the profit or loss on your position, and the amount of margin that you are using.

6. Close Your Position

When you are ready to close your position, you can do so by placing a closing order. To do this, click on the "Close" button next to the position that you want to close.

A pop-up window will appear. In the pop-up window, you will need to specify the quantity of the contract that you want to close and the price that you want to execute the order at.

Once you have placed a closing order, your position will be closed and the profit or loss on your position will be credited to your account.

Conclusion

Perpetual contracts are a powerful tool for trading cryptocurrencies. They allow traders to speculate on the future price of an underlying asset without a fixed expiry date. This makes them ideal for traders who want to maintain a position over a longer period of time.

If you are interested in trading perpetual contracts, Kraken is a good platform to start with. They offer a wide variety of perpetual contracts, low fees, and a user-friendly interface.