Margin trading is a method of trading in which you borrow funds to trade assets to amplify the potential returns on your investment. In other words, Kraken margin trading allows you to trade a more substantial position than your account balance would typically allow. So, what are the key features of Kraken margin trading? This means you can potentially profit from price movements with a more significant impact than traditional spot trading.

Manage their trading costs effectively.

These rollover fees are identical in amount to the opening fees. Occur every 4 hours while the position remains open. Manage their trading costs effectively. Beyond the specific Kraken margin trading fees for openings and rollovers, it’s essential to factor in the standard trade fee when opening and closing positions on margin. Kraken margin trading fees are calculated based on the total value of the margin extended for your trade, with no deduction for collateral held in your account. This regularity allows traders to plan. This fee is calculated based on the trade volume, and there’s no fee for settling a spot position on margin. For instance, if you decide to go long on the BTC/USD pair, the fee rate will be 0.015%, and the fee amount will depend on the quantity of USD involved.

It’s a straightforward process that requires having enough funds in your account for the desired trade. Kraken extends the necessary funds for the entire value of your trade when trading with margin. On the other hand, when you engage in spot trading with margin on Kraken, you enter the realm of “positions”. This means you can buy or sell cryptocurrencies without holding a balance in the specific asset you wish to trade, as long as you maintain sufficient collateral currencies.

Resides in a supported region. The good news is that there are no additional requirements. There are no hidden spreads or changes to worry about, ensuring transparency and predictability in your trading costs. If you’re already using Kraken, you can seamlessly start using Kraken Pro without the need for a separate account or upgrade. For those concerned about fees, Kraken Pro maintains the same fee structure as the Kraken exchange.