Kraken launches Kraken Perps to simplify crypto futures trading, offering retail users flexible tools, risk controls, and educational resources.
Kraken has introduced a new product called Kraken Perps, now available through its main trading app. This aspect introduces perpetual futures trading to a wider audience, including qualified retail traders in select locations. This form of trading was previously available in Kraken Pro which professional traders primarily used.
Kraken Offers Long and Short Positions with New Perps Feature
At this point, retail users are able to use more advanced trading tools with Kraken Perps. Perpetual futures or perps give users an opportunity to make a forecast about the future price changes of a cryptocurrency without holding the underlying property. This implies that anyone can make trades depending on their anticipations, that is, whether the prices will increase or decrease.
To take this as an example, one may think that Bitcoin will increase during the next few months. They might not need to purchase Bitcoin, but open a long position with Kraken Perps. In the event that they make the right prediction, they may get a profit. Conversely, when a person believes that a coin is overvalued and is likely to fall, he/she can take a short position to possibly profit on the fall.
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Perpetual contracts do not have an expiry date as compared to traditional futures. This allows the traders to remain in their positions as long as they wish. Moreover, it is possible to change the size of the position at any moment, which is determined by the degree to which the user is confident in the prediction.
To start, it is only required that a user collateralize money out of his Kraken balance. Initially, USD will be supported, and additional options will be available in the near future. Once they have been funded in the trade, users can decide on whether to increase or decrease to show his or her market perception. Then they determine the volume of the trade–and the trade is prepared.
Kraken Perps Let Users Profit from Crypto Ups and Downs
In practical terms, when someone feels that the value of Bitcoin is underestimated, then he/she may choose to go long on a BTC perpetual contract. In case the price increases, they earn a profit. When they feel that a coin is hyped and may crash, they could go short and make a profit when the price goes down. Notably, the tool allows the user to move or close positions anytime.
Kraken Perps are focused on futures trading that is easier to understand and not as daunting. The app has a clear design, easy guidelines, and supportive instructions. This assists users in trading with confidence and less confusion.
But as any trading, perps are risky. Kraken has safety features in place to guard the users. Among them is the customizable stop-loss order, which restricts the losses in case the market is unfavorable to the position of an individual.
Also, Kraken is providing learning materials to enable users to learn how the use perps responsibly. These materials include the working mechanisms of the instruments, risk management, and avoiding common errors.
The release of Kraken Perps is an indicator of a change in the crypto trading world. Previously regarded as something to be used by professionals, perpetual contracts are now opening up to ordinary users, albeit with considerable caution and with appropriate protection measures.
The business of trading perps is not all about making quick money. Rather, it is a question of providing users with additional options to share their views on the market, take control of portfolio risk and create intelligent strategies.
