How do I start trading futures contracts on Kraken?

Kraken offers leveraged futures trading on major crypto pairs like BTC/USD and ETH/USD, with support for perpetual and quarterly contracts settled in USDC.

Aug 09, 2025 at 01:56 pm

Understanding Futures Contracts on Kraken

Futures contracts on Kraken allow traders to speculate on the future price of a cryptocurrency without owning the underlying asset. These contracts are agreements to buy or sell a specific cryptocurrency at a predetermined price on a set date in the future. Kraken supports a variety of futures pairs, including BTC/USD, ETH/USD, and other major cryptocurrencies against the US dollar. Trading futures involves leverage, meaning you can control a larger position with a smaller amount of capital. However, this also increases both potential profits and potential losses. It's essential to fully understand margin requirements, liquidation risks, and funding rates before entering any trade.

Kraken offers both perpetual futures and quarterly futures. Perpetuals do not have an expiry date and are kept active through periodic funding payments between long and short positions. Quarterly futures, on the other hand, expire on set dates and are typically used for hedging or longer-term positioning. The Kraken Futures platform is accessible via the main Kraken website or through the dedicated Futures interface at futures.kraken.com.

Setting Up a Kraken Account for Futures Trading

To begin trading futures on Kraken, you must first have a verified account. If you don’t already have one, visit kraken.com and click “Sign Up.” Provide your email address, create a strong password, and complete the email verification. After registration, proceed to verify your identity by submitting government-issued identification and proof of address. Kraken requires different levels of verification depending on your country and intended trading volume.

Once your account is verified, navigate to the Funding section and ensure your account supports futures trading. You may need to enable futures trading in your account settings. This is done by going to “Security” > “Account Settings” > “Trading Permissions” and toggling on futures access. You will be prompted to confirm this action via two-factor authentication (2FA), which must be set up prior to this step. Kraken supports Google Authenticator and Authy for 2FA.

Funding Your Futures Wallet

Kraken separates spot and futures balances. To trade futures, you must transfer funds to your futures wallet. Log in to your Kraken account and go to the “Funding” tab. Select “Transfer Funds” and choose the source wallet (e.g., your spot wallet) and destination (futures wallet). Select the cryptocurrency you wish to transfer, such as USD Coin (USDC) or Bitcoin (BTC), depending on the contract you plan to trade.

• Choose the amount to transfer
• Confirm the transaction using your 2FA method
• Wait for the transfer to complete (usually instant)

Once funds are in your futures wallet, they are available for opening positions. Note that Kraken Futures uses USDC as the default settlement currency for most contracts, so depositing USDC is often the most straightforward option. You can also use BTC or ETH as collateral, but be aware of volatility risks.

Navigating the Kraken Futures Interface

Access the Kraken Futures platform by visiting futures.kraken.com and logging in with your Kraken credentials. The interface displays several key sections: the order book, price chart, open positions, and order entry panel. Select a futures contract from the dropdown menu—options include BTC/USD Perpetual, ETH/USD Quarterly, and others.

The chart area supports multiple timeframes and technical indicators. You can customize the view by adding moving averages, RSI, or Bollinger Bands. To place a trade, locate the order entry panel on the right side. Choose between limit, market, or stop-market orders. Set your desired leverage using the slider—options range from 1x to 50x depending on the contract.

• Enter the contract size or dollar amount
• Adjust leverage to your risk tolerance
• Select long (buy) or short (sell) position
• Review fees and estimated liquidation price
• Click “Open Long” or “Open Short”

After submission, the position appears under “Open Positions” with real-time P&L, margin used, and liquidation price.

Managing Risk and Closing Positions

Risk management is critical when trading leveraged futures. Kraken displays your estimated liquidation price for each open position. If the market reaches this price, your position will be automatically closed to prevent further losses. To reduce liquidation risk, consider using stop-loss orders or reducing leverage.

To close a position, go to the “Open Positions” tab and click “Close.” You can choose to close the entire position or a partial amount. Alternatively, you can manually place an opposite trade (e.g., sell to close a long position). Kraken also allows take-profit and stop-loss orders to be set when opening or managing a trade.

Monitor funding rates if holding perpetual contracts overnight. These rates are exchanged every 8 hours between long and short holders. A positive rate means longs pay shorts, and vice versa. Check the funding rate display on the contract page before opening a position.

Withdrawing Funds After Trading

After closing your futures positions and settling any obligations, you can transfer remaining funds back to your spot wallet. Go to “Funding” > “Transfer Funds” and select the futures wallet as the source. Choose your spot wallet as the destination and specify the amount and asset (e.g., USDC, BTC).

• Confirm the transfer using 2FA
• Wait for the transaction to process
• Check your spot balance for availability

Once in your spot wallet, you can withdraw funds to an external wallet or exchange. Be sure to double-check withdrawal addresses and network types (e.g., ERC-20, BEP-20) to avoid loss of funds.

Frequently Asked Questions

What is the minimum amount required to start futures trading on Kraken?

Kraken does not enforce a strict minimum deposit for futures trading, but you must have enough to cover the initial margin. For example, opening a small BTC/USD perpetual position at 5x leverage may require as little as $10 worth of USDC. Always ensure your balance exceeds the maintenance margin to avoid liquidation.

Can I trade Kraken futures using a mobile app?

Currently, Kraken does not offer a dedicated mobile app for futures trading. You can access futures.kraken.com through a mobile browser, but the experience may be limited compared to desktop. Full order management and charting are best done on a computer.

How are fees calculated on Kraken Futures?

Kraken uses a tiered fee structure based on your 30-day trading volume. Taker fees start at 0.02% and maker fees at 0.00% for high-volume traders. Fees are deducted from your futures wallet and vary slightly depending on the contract type and settlement asset.

What happens if my position gets liquidated?

If the market price reaches your liquidation price, Kraken automatically closes your position to limit further losses. A liquidation fee is charged, typically equal to 0.5% of the position value. You will retain any remaining balance after the fee and margin loss.