How to set a stop-loss on Kraken futures?

Understanding Stop-Loss in Kraken Futures

A stop-loss order on Kraken Futures is a risk management tool that automatically closes a position when the market reaches a specified price. This prevents further losses if the market moves against your trade. For traders, especially in volatile crypto markets, setting a stop-loss is essential. On Kraken Futures, stop-loss orders are placed as part of a conditional order type, not as a standalone feature like in spot trading. This means you must use a specific order structure — such as a stop-market or stop-limit order — to trigger the exit.

Important: A stop-loss does not guarantee execution at the exact price due to slippage in fast-moving markets, especially during high volatility.

Accessing the Kraken Futures Trading Interface

To begin, log in to your Kraken account and navigate to the Futures section. Ensure you are on the Kraken Futures platform (futures.kraken.com), not the spot trading interface. Select the futures contract you want to trade — for example, BTC/USD perpetual futures. Once on the trading chart, locate the order entry panel typically on the left or bottom of the screen.

• Click on the “Order Type” dropdown menu.
• Select Stop-Market or Stop-Limit, depending on your preference for execution certainty vs. price control.
• Input your position size in contracts or USD value.
• Set the trigger price — this is the price at which your stop-loss activates.

Difference Between Stop-Market and Stop-Limit Orders

Kraken Futures offers both stop-market and stop-limit orders for stop-loss functionality. A Stop-Market order becomes a market order once the trigger price is hit, executing immediately at the best available price. This ensures your position closes but may result in slippage.

A Stop-Limit order becomes a limit order once the trigger price is reached. It will only execute at your specified limit price or better. This gives you more control over the exit price but risks non-execution if the market moves too quickly past your limit.

• Use Stop-Market for guaranteed exit in fast markets.
• Use Stop-Limit when you want to avoid slippage but accept the risk of partial or no fill.

Step-by-Step: Placing a Stop-Loss on an Open Position

If you already have an open position and want to add a stop-loss:

• Go to the “Positions” tab in the Kraken Futures interface.
• Locate your open position (e.g., long 0.5 BTC-PERP).
• Click the “Add Order” or “Manage” button next to the position.
• Choose Stop-Market or Stop-Limit.
• Enter the trigger price below your entry for a long position, or above for a short.
• For Stop-Limit, also set the limit price — this should be close to the trigger to increase fill likelihood.
• Confirm the order using your 2FA method.

This order will remain active until triggered or manually canceled.

Using Take-Profit with Stop-Loss in a Single Order

Kraken Futures allows you to set both a stop-loss and take-profit in one order using the “Conditional Orders” feature. When placing a new order (not managing an open position), select “Conditional” from the order type menu. You’ll see fields for:

• Stop-Loss Trigger Price
• Take-Profit Trigger Price
• Whether to use market or limit execution for each

This is useful for automating your entire trade plan. For example, if you go long BTC at $60,000:

• Set take-profit at $65,000
• Set stop-loss at $58,000
• Both will be monitored, and whichever hits first will execute.

Common Mistakes When Setting Stop-Loss on Kraken Futures

Many users encounter issues due to misunderstanding how Kraken’s conditional orders work. Avoid these pitfalls:

• Setting the trigger price too close to the current market price, causing premature execution during normal volatility.
• Using Stop-Limit with a limit price far from the trigger, leading to unfilled orders during sharp moves.
• Forgetting to check the leverage and margin requirements — a stop-loss might still result in a margin call if the market gaps past your trigger.
• Not verifying the order type — selecting “Market” instead of “Stop-Market” means no stop-loss is actually set.

Always review your active orders in the “Orders” tab to confirm they’re correctly placed.

Frequently Asked Questions

Can I set a trailing stop-loss on Kraken Futures?No, Kraken Futures currently does not support trailing stop-loss orders. You must manually adjust your stop-loss level or use third-party tools if you want trailing functionality.

What happens if my stop-loss triggers but there’s no liquidity?In a Stop-Market order, your position will still be closed, but at whatever price is available — this could result in significant slippage. In a Stop-Limit, the order may remain unfilled if the market price moves past your limit.

Do stop-loss orders work when Kraken Futures is offline or I’m logged out?Yes, all conditional orders, including stop-loss, are server-side. They remain active even if you close the browser or log out, as long as they were successfully submitted.

How do I cancel a stop-loss order on Kraken Futures?Go to the “Orders” tab, find the active stop-loss order, and click “Cancel.” You can filter by “Conditional” orders to locate it faster.