Kraken crypto futures
Kraken has been successfully operating on the market since 2011, and today it is one of the most popular platforms for trading coins. The company has gained great popularity due to the fact that it pays great attention to the quality of service and security issues. Today, this allows her to have an impeccable reputation in the crypto world.
Since its inception, the Kraken cryptocurrency exchange has been providing high-quality financial services to traders from all over the world to this day. It is rightfully considered one of the best platforms for trading cryptocurrencies.
The mission of the crypto-exchange, according to its creators, is the popularization of cryptocurrency and access to blockchain technology for all segments of the population. This goal and user feedback form a tandem that inspires the company's engineers to continuously improve the functionality of the kraken.com platform. The creator of Kraken, Jesse Powell, realizing the growing prospects of digital currency and the rapid development of blockchain technology, set out to develop a platform for currency transfers, geographically and financially not limited. And he succeeded! The crypto exchange is adapted for corporate clients of any size, as well as individual speculators of various levels.
Kraken derivatives trading platform features:
- Provides margin trading option.
- It is considered one of the most reliable crypto exchanges. It has two-phase authentication (not only when logging into your account, but also for gaining access to transactions). It is also possible to use identification by Google account and location.
- There is a complex and lengthy verification, the absence of which makes working on the exchange almost impossible.
- The amount of commission deductions depends on the trading volume. In general, the tariffs of the Kraken platform are among the most affordable.
Kraken cryptocurrency derivatives trading has a lot of advantages compared to other exchanges.
What are crypto derivatives?
Derivatives are an integral part of finance: they are highly complex financial instruments used by advanced or technical investors.
A derivative is a financial contract that derives its value from the underlying asset. Traditionally, derivatives are used in markets such as commodities, currencies, stocks or bonds.
The functions of derivatives go beyond applications to an investment portfolio. In fact, derivatives play a critical role in the development of the crypto industry as a recognized asset class.
Crypto derivatives are a key component of the crypto economy for several reasons. First, derivatives allow investors to diversify their portfolios and expose themselves to different cryptocurrencies. With the help of derivatives, investors can create complex strategies such as pair trading or arbitrage trading. The second reason why derivatives are important is because they facilitate price discovery. Price discovery is the process of determining the value of an asset. It is determined by a number of variables, ranging from market liquidity to information flow.
Kraken derivatives in the Philippines are very popular, as they are in many other countries.
How to trade Kraken derivatives in the Philippines?
Get Kraken cryptocurrency derivatives today and start earning now. In order to start trading on this platform, you first need to fund your account (Please note that various trading opportunities and order options are available on Kraken).
The fastest way to instantly buy, sell or exchange cryptocurrencies is to use the Buy Crypto button at the top of the page.
With this option, you can buy not every cryptocurrency. There is a fee for transactions using the instant buy/sell feature. Before confirming the transaction, the amount of the commission will be indicated.
- Choose a currency pair.
First you need to decide what assets you want to change, for example, buy bitcoins for US dollars or sell ether (ETH) for euros. After that, you can select the appropriate pair in the upper left part of the screen on the "Trade" tab.
- Fill out the order form.
After choosing a currency pair, go to the "New Order" page and select "Simple". You will see three text fields with the option to select a market or limit order. Before entering values in the fields, please familiarize yourself with how market and limit orders work.
A market order is executed instantly as it is matched against limit orders in the orderbooks. Market orders are always charged a slightly higher fee, known as the taker fee (the second indicator below your 30-day volume), to fill market orders. When placing a market order, you can only enter the volume you want to buy or sell, not the price.
Limit orders are executed at the price specified by the user or higher as soon as the market reaches your price. These orders may incur maker or taker fees depending on when the order is executed. If the corresponding order already exists and it will be executed instantly, then pay the taker's commission.
- Confirm order.
After selecting the type of order, you can confirm your choice using the buttons located to the left of the "Total" field. Then you need to click on the large buy / sell button, and you will be taken to the order confirmation page, where you can check all the information. If you check the box "Skip Order Confirmation" you won't have to confirm all the information.
- Wait for order execution.
If you have chosen a market order, the trade will be completed instantly and your balance will change. The user will immediately be able to withdraw or use the funds in another transaction. Completed (closed) orders can be viewed on the "Orders" tab.
Limit orders cannot be filled instantly, but you can view their status in the Orders tab. In the following example, the price of BTC/EUR must fall to 25 for a limit buy order to be filled.
If the order has not yet been executed, you can cancel it by clicking on the red "X" button in the "New and Open Orders" section.
Kraken derivatives trading is done on a daily basis.
How to register?
In order to start using Kraken services, you need to create an account.
- Go to the official site of Kraken.
- Click "Create Account" in the top right corner.
- Enter your email address, create a username and set a strong password.
- Then you will receive a message to activate your account with an activation key.
- Enter the activation code in the account activation form or follow the link in the email.
- Confirm your password, enter the captcha and click on the "Activate Account" button.
Congratulations! Your account has been successfully created and you can now start trading.
Minimum deposit amount
Although most cryptocurrencies can be transferred for free, there is a minimum deposit amount, as well as an address creation fee or a deposit fee in some cryptocurrencies. If the deposit amount is below the required minimum, the funds will not be credited to the account. Exceptions are listed below.
Summable and non-summable minimum deposits
With Ethereum and EWT based tokens, deposits below the specified minimum can still be credited to your account by depositing additional funds to the same deposit address.
- When the balance reaches the minimum required deposit amount, the entire balance will be credited to this account in the form of a single combined deposit.
- There is no time limit to reach the minimum deposit amount.
For all other cryptocurrencies, deposits below the minimum amount, unfortunately, will not be credited to the account even if you send more funds (that is, the minimum amount does not add up).
List of Kraken derivatives
On this platform, you can trade digital asset derivatives by going long or short with leverage to profit from price fluctuations or to hedge price risk. Kraken Futures provides access to regulated futures products.
Perpetual futures are a special type of futures contract with no expiration date that auto-rolls every four hours.
Kraken crypto futures trading can also be the first experience for young traders, because the platform has a demo account, where you can learn more about the numerous functions of the terminal and work out your strategies.
Between the start and end of the rate settlement period, the funding rate is defined as a time-weighted average premium and is normalized on an hourly basis. Perpetual futures do not expire, meaning that positions in the contract do not expire, however every four hours there is a settlement process that applies funding positions to anchor the spot price to the index. This contract remains in trading at all times and will only expire in the event of an emergency if Crypto Facilities deems it necessary for financial settlement purposes. For futures, Kraken uses Initial Margin (IM) and Maintenance Margin (MM) to manage the credit risk associated with open positions.
The larger a trader's position, the more liquidity is required to liquidate that position in the event of an unfavorable price move.
In addition, the more volatile the currency pair, the higher the margin required to withstand price fluctuations. Margin requirements and maximum position size are calculated separately for each instrument and expiration date.
Leveraged futures risk is managed on the platform through a forced liquidation process in the instant margin system. Liquidation occurs at the margin account level (in which various contracts can be traded) when the required maintenance margin on the contracts exceeds the equity (portfolio value). The system can liquidate any contracts using margin from this margin account.
The whole process looks like this:
- Margin account capital, calculated on the basis of the notional price and depending on the level of the contract, falls below the required maintenance margin for this client. This event starts the liquidation process.
Note: Different contracts may use the same margin account and the notional prices of contracts with different expiration dates can and will differ.
- The system fills an immediate close or cancel (IoC) order for any contract in a margin account at an implied price of 0-capital for each position.
- The order book for this contract(s) may not be liquid enough to close the entire volume of open positions, resulting in the formation of a balance of unliquidated positions.
- The balance of unliquidated positions is assigned to liquidity providers (LPs)/market makers who actually have open offers to take any outstanding positions (always with price and time priority and AFTER the price in the orderbook has been brought up to the price assigned by the liquidity providers). This assignment procedure is necessary to create a liquidity cushion to prevent systemic losses that other platforms cover from the insurance fund.
- If the system cannot find a counterparty to liquidate unclosed positions, then the process of destroying the position takes place, which reduces the Open Interest by the size of the unliquidated position.
Also, each type of contract has its own risk profile in terms of volatility, liquidity and volume. Therefore, there are higher margin requirements for larger positions, the levels of which vary between pairs.
Undoubtedly, the Kraken cryptocurrency derivatives trading platform is considered a kind of benchmark for safe trading and high-quality functionality. In addition to regulatory activities from the outside, developers do not stop improving the cyber protection of their server.
The crypto exchange works with a large number of the most popular pairs and currencies with high liquidity. At the same time, the management declares its intention to further develop this direction. Also important is the fact that each new coin that appears on the platform undergoes a thorough check and comprehensive analysis. Kraken clients can be confident in the prospects of all the cryptocurrencies presented here. And another important advantage of the exchange is that the commission fees on the platform are among the most acceptable for all crypto exchanges. In addition, they vary markedly, depending on the category of the trader and the volume of his trades.
Kraken crypto futures in the Philippines are available for purchase today! Choose one of the best platform for crypto derivatives trading and start your successful activity!