Understanding Kraken futures order types

Kraken Futures offers flexible order types like limit, market, stop-loss, trailing stop, and post-only/reduce-only orders for precise risk management in crypto trading.

Jul 29, 2025 at 12:07 am

What Are Kraken Futures?

Kraken Futures is a non-custodial, decentralized derivatives trading platform built on top of Kraken’s spot exchange infrastructure. It allows traders to speculate on the future price of cryptocurrencies using leverage. Unlike traditional futures, Kraken Futures supports cross-margin and isolated margin positions, giving users flexibility in risk management. The platform offers a wide range of order types tailored for both novice and advanced traders. Understanding these order types is essential to executing precise strategies, especially in volatile crypto markets.

Limit Orders in Kraken Futures

A Limit Order lets you set a specific price at which you want to enter or exit a position. This type of order ensures you don’t get filled at a worse price than intended. For example, if you want to buy BTC-PERP at $60,000 or lower, you place a limit order at that price. The trade only executes when the market reaches your specified level.

• Navigate to the Kraken Futures trading interface
• Select the contract (e.g., BTC-PERP)
• Choose “Limit” from the order type dropdown
• Enter your desired price and quantity
• Select “Buy” or “Sell”
• Click “Place Order”

This order type is ideal for traders who want full price control without worrying about slippage or market volatility.

Market Orders for Immediate Execution

A Market Order executes instantly at the best available price in the order book. It guarantees execution but not price. If liquidity is low, your order may fill at a significantly different price than expected—a phenomenon known as slippage.

• Go to the Futures trading page
• Choose the contract
• Select “Market” as the order type
• Input the quantity you wish to trade
• Confirm whether it’s a “Buy” or “Sell”
• Click “Place Order”

This is best used when speed matters more than precision—such as reacting to breaking news or closing a position quickly to limit losses.

Stop-Loss and Take-Profit Orders

Kraken Futures supports Stop-Loss (SL) and Take-Profit (TP) orders as part of its conditional order system. These are crucial for risk management:

• A Stop-Loss automatically closes your position if the price moves against you beyond a set level
• A Take-Profit locks in gains when the price hits your target

To set both simultaneously:

• Place your initial order (limit or market)
• In the same interface, scroll to “Advanced Options”
• Enter your Stop-Loss price under “Stop Price”
• Enter your Take-Profit price under “Limit Price”
• Ensure the order type is set to “Stop Limit” or “Stop Market”
• Submit the order

These orders help automate trading strategies and reduce emotional decision-making during fast-moving markets.

Trailing Stop Orders for Dynamic Protection

A Trailing Stop adjusts automatically as the market moves in your favor. For example, if you’re long BTC-PERP and the price rises, the stop price follows it upward by a set distance (e.g., 2%). If the price reverses, the stop locks in and triggers a market or limit sell.

Steps to place a trailing stop:

• Select the futures contract
• Choose “Trailing Stop” from the order types
• Set the trailing distance (in USD or %)
• Input the quantity
• Choose whether to trigger a market or limit order upon activation
• Click “Place Order”

This is particularly useful for trend-following strategies where you want to capture gains while limiting downside risk without constant monitoring.

Post-Only and Reduce-Only Orders

These are specialized order types for advanced strategies:

• Post-Only: Ensures your limit order only adds liquidity to the order book—it will cancel if it would immediately match (i.e., act as a taker). This avoids paying taker fees.
• Reduce-Only: Guarantees the order only reduces an existing position—it won’t open a new one or increase your current exposure.

How to apply them:

• When placing a limit order, look for the “Advanced Options” section
• Check the box for “Post Only” or “Reduce Only”
• Confirm your order parameters
• Submit the order

These options are vital for fee optimization and position control, especially in high-frequency or scalping strategies.

Frequently Asked Questions

Can I cancel a Stop-Loss or Take-Profit order after placing it?

Yes. Go to the “Open Orders” tab in Kraken Futures, locate the conditional order, and click “Cancel.” Both the main order and its attached conditions must be canceled together if they’re part of a single conditional order.

What happens if my Trailing Stop triggers but there’s no liquidity?

If you choose a “Trailing Stop Market,” it executes as a market order and may suffer slippage in low-liquidity conditions. If you choose “Trailing Stop Limit,” it may not fill at all if the limit price is too far from the current market.

Do Post-Only orders ever execute as takers?

No. If Kraken detects that your Post-Only limit order would match immediately with an existing order, it cancels the entire order instead of allowing it to act as a taker. This protects you from unintended taker fees.

Is Reduce-Only enforced even if I have multiple positions?

Yes. Kraken evaluates your net position across the contract. If the order would increase your net long or short exposure—even if it reduces one leg of a multi-position setup—it will be rejected.