How to play Kraken perpetual contract

Kraken offers perpetual contracts for cryptocurrency trading, allowing traders to speculate on future prices without physical delivery and up to 50x leverage.

Nov 09, 2024 at 01:06 am

How to Play Kraken Perpetual Contract

Perpetual contracts, also known as perpetual futures, are a type of financial derivative that allows traders to speculate on the future price of an underlying asset, such as a cryptocurrency, without having to take physical delivery of the asset. Perpetual contracts are similar to traditional futures contracts, but they do not have a set expiration date. This means that traders can hold positions for as long as they want, without having to worry about the contract expiring.

Kraken is one of the most popular cryptocurrency exchanges in the world, and it offers a variety of perpetual contracts for trading. Kraken's perpetual contracts are settled in the underlying cryptocurrency, and they offer up to 50x leverage. This means that traders can potentially multiply their profits by up to 50 times.

If you are new to perpetual contracts, it is important to understand the risks involved before you start trading. Perpetual contracts can be very volatile, and it is possible to lose all of your investment. It is important to only trade with money that you can afford to lose, and to never risk more than you are willing to lose.

How to Start Trading Kraken Perpetual Contracts

1. Create a Kraken account. If you don't already have a Kraken account, you will need to create one before you can start trading perpetual contracts. To create an account, visit the Kraken website and click on the "Create Account" button.
2. Deposit funds into your Kraken account. Once you have created a Kraken account, you will need to deposit funds into your account before you can start trading. Kraken accepts a variety of deposit methods, including bank transfers, credit cards, and cryptocurrencies.
3. Find the perpetual contract you want to trade. Kraken offers a variety of perpetual contracts for trading, including BTC/USD, ETH/USD, and XRP/USD. To find the perpetual contract you want to trade, click on the "Markets" tab on the Kraken website and select "Perpetual" from the drop-down menu.
4. Place an order. Once you have found the perpetual contract you want to trade, you can place an order. To place an order, click on the "Buy" or "Sell" button on the order form and enter the amount of the contract you want to trade. You can also choose the leverage you want to use for the trade.
5. Monitor your position. Once you have placed an order, you will need to monitor your position to make sure that it is performing as expected. You can monitor your position by clicking on the "Positions" tab on the Kraken website.

Tips for Trading Kraken Perpetual Contracts

• Use a stop-loss order. A stop-loss order is an order that automatically sells your contract if the price of the underlying asset falls below a certain level. This can help you to limit your losses if the market moves against you.
• Don't over-leverage yourself. Leverage can amplify your profits, but it can also amplify your losses. It is important to only use leverage that you are comfortable with, and to never risk more than you are willing to lose.
• Be patient. Perpetual contracts can be volatile, and it is important to be patient when trading them. Don't try to force a trade, and wait for the right opportunity to enter the market.

Conclusion

Perpetual contracts can be a powerful tool for trading cryptocurrencies. However, it is important to understand the risks involved before you start trading, and to trade responsibly. By following the tips above, you can increase your chances of success when trading perpetual contracts on Kraken.