Cryptocurrency markets are fast-paced and full of opportunities, and Kraken Futures offers a powerful way to tap into their potential. As trading strategies evolve beyond simple buy-and-hold models, futures trading has become a go-to method for both new and experienced traders seeking flexibility, leverage, and strategic advantage.
This comprehensive guide walks you through everything you need to know about Kraken Futures—from understanding perpetual contracts and order types to funding your wallet and managing risk effectively. Whether you're just starting out or refining your strategy, this guide is designed to help you trade with confidence.
👉 Discover how to maximize your trading potential with advanced tools and insights.
What Are Kraken Futures?
Kraken Futures is a feature offered by the trusted Kraken exchange, enabling users to trade perpetual futures contracts across a wide range of cryptocurrencies. With over 95 available perpetuals, the platform supports diverse trading strategies and caters to all experience levels.
But what exactly are perpetual futures?
Perpetual futures are derivative contracts that allow traders to speculate on cryptocurrency price movements without owning the underlying asset. Unlike traditional futures with expiration dates, perpetual contracts have no set settlement time, allowing positions to remain open indefinitely—hence the name "perpetual."
One of the most popular offerings on Kraken Futures is USD linear perpetual futures, which let traders take either long or short positions:
- Going long: You profit if the asset’s price rises.
- Going short: You profit if the asset’s price falls.
This two-way trading capability means you can generate returns in both rising and falling markets—an essential advantage in the volatile crypto space.
Leverage and Trading Fees
Kraken Futures supports leverage up to 50x, giving traders the ability to control larger positions with less capital. While this increases profit potential, it also magnifies risk—making sound risk management crucial.
The platform operates on a maker-taker fee model, with competitive rates:
- Maker fees start at 0.02% (can go as low as 0% with high volume).
- Taker fees start at 0.05% (reducible to 0.01%).
Higher 30-day trading volumes unlock lower fees, rewarding active traders.
Kraken Pro: The Hub for Advanced Trading
While Kraken Futures can be accessed via multiple interfaces, Kraken Pro is the preferred platform for serious traders. It consolidates spot, margin, futures, and staking tools in one place, offering advanced charting, real-time data, and powerful order execution.
Although not mandatory for futures trading, Kraken Pro provides a smoother and more feature-rich experience than legacy platforms.
Understanding Futures Order Types
To trade effectively on Kraken Futures, it’s essential to understand the different order types available. These instructions determine how and when your trades execute, helping you manage risk and optimize entries and exits.
Market Orders
A market order executes immediately at the best available price. It ensures quick entry or exit but may fill at slightly varying prices if the order book lacks depth.
For protection, Kraken applies a 1% price deviation rule: orders won’t match more than 1% above the best ask (buy) or below the best bid (sell). This may result in partial fills or cancellations for large orders.
Market orders can also be set as reduce-only, meaning they only reduce existing positions—never open new ones.
Limit Orders
With a limit order, you specify the exact price (or better) at which you want to trade. If the market doesn’t reach your price, the order waits in the order book.
Important rules:
- The limit price must be within 20% of the mark price.
- Margin is required to place this order type.
Use limit orders when you want precise control over entry or exit points.
Stop-Loss Orders
Stop-loss orders help minimize losses on open positions.
- Stop-loss market order: Triggers a market order when the stop price is hit. No margin needed to place it.
- Stop-loss limit order: Triggers a limit order instead, with a defined worst-case execution price. Requires margin and stays within the 20% price collar.
Both types use trigger signals like Last Price, Mark Price, or Index Price, allowing customization based on volatility tolerance.
Take Profit Orders
These lock in gains automatically.
- Take profit market order: Closes your position via market order when target price is reached.
- Take profit limit order: Triggers a limit order instead, giving you more control over exit pricing.
Margin checks apply before triggering, so ensure sufficient funds are available.
Additional Order Features
- Post-only: Ensures your limit order doesn’t execute immediately (avoids taker fees).
- Immediate-or-Cancel (IOC): Executes what it can instantly; cancels the rest.
- Reduce-only: Only reduces current positions.
You can edit active orders to adjust quantity, price, or stop levels—though changes may affect queue priority.
👉 Learn how professional traders use order types to gain an edge in volatile markets.
How to Trade on Kraken Futures
Ready to get started? Here’s a step-by-step breakdown of launching and executing your first futures trade.
Step 1: Check Eligibility
Before trading, confirm you meet Kraken’s requirements:
Verification Levels
- Intermediate Level: Required for personal accounts. Includes ID verification, address proof, and personal details.
- Pro Level: For advanced users. Requires KYC questionnaire and 2FA enabled.
Note: Kraken Futures is not available in the U.S., Australia, Canada, UK, and several other regions due to regulatory restrictions.
Step 2: Launch Kraken Futures
Access Kraken Futures via:
- Kraken website
- Kraken Pro web platform
- Kraken Pro mobile app (iOS/Android)
To begin on Kraken Pro:
- Log in to your account.
- Go to the Trade tab.
- Select a futures market using the market selector.
- Click Unlock Futures at the top of the order form.
Step 3: Fund Your Futures Wallet
Transfer funds from your spot wallet:
- Navigate to Portfolio > Futures.
- Click Transfer to Futures.
- Choose currency and amount (must meet minimums).
- Preview and confirm transfer.
Funds appear instantly in your futures wallet.
Supported Collateral
- Single-collateral inverse futures (legacy): BTC, ETH, LTC, XRP, BCH.
- Multi-collateral linear futures (Kraken Pro): USD, USDC, USDT, EUR, BTC, ETH, SOL, ADA, DOT, and more.
Each collateral type has a conversion rate (0.05–0.5%) and haircut (0–10%), affecting usable margin value.
Step 4: Place Your Trade
- Choose a contract (e.g., BTC/USD perpetual).
- Switch to the Futures tab in the market selector.
- On the Trade page, select Buy or Sell, choose order type (market or limit), and enter amount.
- Use the Isolate Position toggle to cap leverage and risk.
- Review details carefully—there’s no confirmation screen—and click Buy/Sell.
Market orders execute instantly; limit orders appear under Open Orders until filled.
Risk Management Strategies
Futures trading involves high risk—especially with leverage. Kraken employs robust systems to protect users and maintain market stability.
Equity Protection Process (EPP)
Kraken’s EPP ensures you’ll never owe more than your account balance—even during extreme volatility.
Single-Collateral EPP
- Liquidation: An IOC order closes part of your position if equity drops below maintenance margin.
- Assignment: Unfilled contracts are assigned to liquidity providers at zero-equity price.
- Unwind: If no provider is found, contracts are terminated fairly.
Kraken returns excess margin if liquidation occurs above bankruptcy price—unlike many exchanges.
Multi-Collateral EPP
Includes all single-collateral steps plus:
- Covered Liquidation: Uses funds from the liquidity pool to cover deeper losses via additional IOC orders.
This layered system enhances safety while preserving fairness.
General Risk Management Tips
To protect your capital:
- Diversify across assets and strategies.
- Use stop-loss and take-profit orders consistently.
- Apply leverage conservatively—start low as you learn.
- Stay updated on market news and macro trends.
- Define your risk tolerance and stick to it.
- Avoid emotional decisions; follow a clear trading plan.
- Monitor open positions regularly.
- Start small to build experience before scaling up.
Frequently Asked Questions (FAQ)
Q: Is there a Kraken Futures app?
A: The standalone Kraken Futures app was discontinued in January 2022. Use the Kraken Pro app instead for mobile futures trading.
Q: Can I trade Kraken Futures from the U.S.?
A: No. Kraken Futures is not available to users in the United States, Australia, Canada, UK, or several other restricted jurisdictions.
Q: What is the maximum leverage on Kraken Futures?
A: Up to 50x, depending on the contract and collateral used.
Q: How are fees calculated?
A: Maker fees start at 0.02%, taker fees at 0.05%. Volume-based tiers reduce these further—even down to 0% for makers.
Q: What happens if my position gets liquidated?
A: Kraken’s EPP triggers automated steps to close or assign your position. You won’t face negative balances thanks to equity protection.
Q: Can I edit or cancel open orders?
A: Yes. You can edit quantity, price, or stop levels—or cancel entirely—from the Open Orders tab.
👉 See how top traders manage leverage and risk for consistent results.
Final Thoughts
Kraken Futures is a powerful tool for anyone looking to expand beyond basic crypto trading. With access to over 95 perpetual contracts, flexible collateral options, high leverage, and strong risk controls like EPP, it offers both opportunity and security.
By mastering order types, funding your wallet correctly, and applying disciplined risk management, you can navigate volatile markets with greater confidence. Whether you’re hedging positions or speculating on price moves, Kraken Futures equips you with the tools needed for success.
Remember: knowledge is your greatest asset. Stay informed, trade responsibly, and always prioritize long-term sustainability over short-term gains.
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