How to trade perpetual contract in Kraken

How to Trade Perpetual Contracts on Kraken

Perpetual contracts, also known as perpetual futures, are a type of derivative that allows traders to speculate on the future price of an asset without having to take delivery of the underlying asset. This makes them a popular choice for traders who want to gain exposure to the cryptocurrency market without having to worry about the logistics of storing and managing the underlying asset.

Kraken is one of the leading cryptocurrency exchanges that offer perpetual contract trading. In this guide, we will walk you through the steps on how to trade perpetual contracts on Kraken.

1. Create a Kraken Account

The first step is to create a Kraken account. You can do this by visiting the Kraken website and clicking on the "Sign Up" button. Once you have created an account, you will need to verify your email address and identity.

2. Deposit Funds into Your Account

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

3. Choose a Perpetual Contract

Kraken offers a variety of perpetual contracts, including contracts for Bitcoin, Ethereum, Litecoin, and Ripple. To choose a perpetual contract, click on the "Trade" tab at the top of the Kraken website and then select "Perpetual" from the drop-down menu.

4. Place an Order

Once you have chosen a perpetual contract, you can place an order to buy or sell the contract. To do this, click on the "Buy" or "Sell" button and then enter the amount of the contract that you want to trade. You can also specify the price at which you want to buy or sell the contract.

5. Monitor Your Position

Once you have placed an order, you can monitor your position by clicking on the "Orders" tab at the top of the Kraken website. This tab will show you the status of your open orders, as well as the profit or loss that you have realized on your trades.

6. Close Your Position

When you are ready to close your position, you can do so by clicking on the "Close" button next to the order that you want to close. You can also close your position by placing an opposite order. For example, if you have a long position, you can close it by placing a short order.

7. Withdraw Your Funds

Once you have closed your position, you can withdraw your funds from Kraken by clicking on the "Withdraw" tab at the top of the Kraken website. You can withdraw your funds to a bank account, a credit card, or a cryptocurrency wallet.