How to trade futures on Kraken?

Kraken allows futures trading on major cryptocurrencies like Bitcoin, Ethereum, and Solana, offering leverage and cash-settled contracts for speculation without owning the underlying asset.

Jul 21, 2025 at 10:01 am

Understanding Futures Trading on Kraken

Futures trading involves the buying and selling of contracts that obligate the parties involved to transact an asset at a predetermined future date and price. Kraken, one of the leading cryptocurrency exchanges, offers futures trading for a variety of digital assets. Before diving into the steps, it's crucial to understand how futures contracts work on this platform. Unlike spot trading, where you directly buy or sell cryptocurrencies, futures allow you to speculate on the price movements without owning the underlying asset.

On Kraken, users can trade futures on major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). These contracts are typically cash-settled and offer leverage, which can amplify both profits and losses. It's essential to have a solid understanding of leverage, margin requirements, and liquidation risks before engaging in futures trading on Kraken.

Setting Up Your Kraken Account for Futures Trading

Before you can trade futures on Kraken, you must ensure that your account is properly configured. This includes completing identity verification, funding your account, and enabling the necessary trading permissions.

• Log in to your Kraken account or create a new account if you haven’t already done so.
• Complete the identity verification process, which may include submitting government-issued ID and proof of address.
• Navigate to the “Trading” section and enable futures trading by agreeing to the relevant terms and conditions.
• Fund your account with either USD or stablecoins depending on the futures pair you intend to trade.

Once these steps are completed, you will have access to the futures trading interface, where you can view available contracts and market data.

Navigating the Futures Trading Interface on Kraken

Kraken’s futures trading interface may appear complex at first, but once you understand the key components, it becomes much easier to use. The interface typically displays charts, order books, open positions, and trade history.

• Select the desired futures contract from the trading pair dropdown menu. For example, BTC/USD or ETH/USD.
• Choose between isolated or cross margin mode depending on your risk tolerance and trading strategy.
• Review the order book to understand current bid and ask prices.
• Set your leverage level (e.g., 2x, 5x, 10x) based on your risk appetite and capital allocation.

The interface also includes tools for placing limit orders, market orders, and stop-loss orders. Understanding these order types is critical for managing your futures positions effectively.

Placing a Futures Trade on Kraken

Once you’ve selected your contract and set your leverage, you’re ready to place a trade. Kraken allows users to go long (buy) or short (sell) depending on their market outlook.

• Click on the “Buy” or “Sell” button depending on your directional bias.
• Choose between limit, market, or conditional orders based on your trading strategy.
• Enter the size of your position in either USD value or contract units.
• Review the estimated liquidation price and ensure it aligns with your risk management strategy.
• Click “Place Order” to execute your trade.

After placing the trade, you can monitor your position in the “Positions” tab. Here, you can view your unrealized profit or loss, maintenance margin, and liquidation price in real-time.

Managing and Closing Your Futures Position

Effective risk management is vital when trading futures due to the leveraged nature of these instruments. Kraken provides several tools to help you manage your exposure and protect your capital.

• Set stop-loss and take-profit orders to automate your exit strategy.
• Adjust your position size or leverage as market conditions change.
• Monitor margin levels regularly to avoid liquidation.
• Manually close your position by clicking the “Close” button next to the open position.

You can also partially close your position if you want to take profits while keeping some exposure open. Always keep an eye on funding rates if you're holding positions overnight, as these can impact your profitability over time.

Frequently Asked Questions (FAQs)

What is the minimum contract size for futures trading on Kraken?

Kraken sets minimum contract sizes based on the cryptocurrency being traded. For example, Bitcoin futures typically have a minimum size of 0.01 BTC, while Ethereum futures start at 0.1 ETH. These values can vary depending on the market and are subject to change.

Can I trade futures on Kraken using a mobile app?

Yes, Kraken offers a mobile trading app that supports futures trading. However, the mobile interface may have fewer advanced features compared to the desktop version, so traders with complex strategies may prefer using the web platform.

Are there any fees associated with futures trading on Kraken?

Kraken charges a combination of taker and maker fees for futures trading. Taker fees apply when you place a market order that gets filled immediately, while maker fees apply when you place a limit order that adds liquidity. These fees are generally competitive and can be reduced based on your trading volume.

How does leverage work in Kraken futures trading?

Leverage allows you to control a larger position size with a smaller amount of capital. Kraken offers leverage up to 50x for certain assets, but higher leverage increases the risk of liquidation. Users should carefully consider their risk tolerance and adjust leverage accordingly.