Margin trading on Kraken: exactly what does opening and closing a leveraged position do?
Got a question regarding leveraged (margin) trading on Kraken. Suppose the current Bitcoin price is $5000 and I have $2500 on my account. I could just buy 0.5 BTC, but instead I would like to open a long margin position with 3x leverage. So I do New Order, Intermediate, set Leverage to 3, and I buy 0.5 BTC. What happens now? Is the $2500 reduced from my account balance, and 0.5 BTC added, and the trade remains in my 'Positions' tab? Or is it something else, to reflect that my 0.5 BTC is 'locked' in this margin trade while the position is open? Then suppose the Bitcoin price goes up by $500. Am I correct in thinking that my (unrealized) profit is now $750, because my position is 0.5 BTC at 3x leverage? Now suppose at this point I want to close the trade i.e. take profit. From what I understand I have then to do a counter trade, i.e. do a margin trade in the opposite direction. So in this case I margin sell 0.5 BTC (regardless of what leverage) and then what? Am I now left with $3250 and no BTC in my account, and no remaining open positions? PS. not taking trading fees into account here, obviously the actual numbers would be slightly less. And for simplicity I'm assuming market or limit orders here that are filled at the given example prices.
At Kraken, we want to help our users become more informed traders. Today we hope to shed some light into the fascinating & immersive world of margin trading on Kraken. Use this brief video tutorial as your guide to help you get started!
Hi, Can someone help me figuring this out: Let's say my account balance on Kraken is $1000 and I'm shorting $2500 worth of BTC. I understand that I will need at least 3x leverage to be able to do that, but is there any reason not to use the max - 5x leverage in this (or every) case? Even though 3x is enough, 5x puts margin call/liquidation range further, are tehre any cons to using higher leverage? As I understand the profit/loss would be highelower based on how much money/BTC I "borrowed" and not on the leverage itself, correct? Thank you in advance for the help.
Hi. I tried to open a position a few days ago on the ETH/EUR pair. I used 3X leverage and made a BUY-market order of 300 eth ( a test. kept for a few minutes, just for learning, nothing I can afford to loose). the position showed like a 50€ positive profit on the Profit /Loss column after a few minutes so I tried to sell.I used the same leverage and quantity, and made a SELL order to close the position. However I didn't make that profit at all, and actually lost like 30€. I'm super noob on margin trading and probably I'm doing something wrong when creating the orders. should I BUY/SELL or settle positions? I then tried the opposite: made a 3x leverage sell order (as a new position) and tried to profit once the ETH/EUR index was going down on kraken. The Profil/loss column showed 30€ of profit, but when I created the opposite order (3Xbuy at limit) I ended up with a loss. tl;dr: when a position for a leveraged BUY/SELL order is profitable/what i'm doing wrong? edit: I might have some holes in the understanding of the concept of margin trading, plz be gentle. <3
[uncensored-r/CryptoCurrency] Margin trading on kraken
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Did anyone else get this email? I mean, I understand wanting everything to have margin trading available, but REP is probably the least suitable coin for that, because of it disappearing if it's not used. Why would they implement this?
Hey, anyone have experience margin trading on kraken? I've been at it and the last 5 trades have gone perfectly. However, this last one I had a perfect long limit sitting for about 10 min, the price hit but then it didn't go through. I move it up a bit and try again and same thing. I looked at the orders and it said insufficient margin... which is crazy cause it was only a $500 order... does this happen often? Its crazy to think that an exchange trading that much volume wouldn't have $500 in margin... or maybe the margin volume isn't counted? eh, anyways anyone have this happen to them? and if so how often?
People using Kraken to margin trade ETH, how do you set Stop Loss or Take Profit orders?
Kraken disabled advanced orders like Stop Loss or Take Profit last year. I wonder how they expect people to margin trade without these order types. Do they really expect us to keep watching the price every minute and settle positions manually in real time? If you have been margin trading on Kraken, how have you been doing it? Is there a third party tool (like Coinigy or a bot) that you use for placing pseudo margin orders (i.e. orders are only sent to the exchange when certain trigger conditions are met) on Kraken?
Hey, I feel really dumb for not getting this because its probably something really simple. I've been trading since summer, never got really into it though. I've looked at margin trading on kraken, however I don't fully understand how it works. https://www.kraken.com/help/fees https://support.kraken.com/hc/en-us/articles/206161568-What-are-the-fees-for-margin-trading- This is the information regarding fees on their site. What I'm wondering is, say I have $1000 in that account. If I use 5:1 leverage and buy $5000 worth of bitcoin, do I get the .26% fee on the $1000 or on the $5000? I'm assuming it would be on the $5000, no? I asked their support and they told me it was only on the $1000. I've just been trading with $1000 out of my account, if they only fee the original amount -- if I wanted to trade $1000 sized positions, I would just do $200 5:1 for a fraction of the fees? I'm just confused and tried to understand on my own but I just give up at this point lol
Hi guys, new to margin trading on Kraken and just want to double check before I get properly into it. Can you set a stop loss on a Short position? I.e. if I short at 2500 can I set a stop loss at 2520? If so how? Their options are pretty confusing cheers
How does margin trading work on kraken/ other exchanges
If I have $500 worth of xrp and I get 3x leverage what happens after that. Is it like an options type set up where I set a date and I take profit if the price is at what I expected it to be at on that date. Or am I just getting 3x the amount of XRP,, I’m pretty confused.
Leverage XMR/EUR with XBT as collateral for mid-long term
I'm trying to get a better understanding of margin trading on Kraken (https://support.kraken.com/hc/en-us/sections/200560633-Leverage-and-Margin). Question 1) Let's assume my balance on Kraken is 1 XBT and my free margin is 1k €. I want to buy 2 XMR for a price of 70 €/XMR with leverage 2. In my understanding that order requires me to spend 70 € and to have at least 70 € as collateral balance (free margin) on my account. That means I'm not able to place my order as I don't have a EUR balance of at least 70 €. Is that correct? Question 2) Let's assume XMEUR will go up in the mid-long term but will also have temporary dips. Let's also assume I don't have much fiat available but I'm invested in XBT. The risk of leverage trading is then to get liquidated in case of temporary dips. One could hedge this risk with a high enough equity (= high enough XBT balance) to keep the margin level way above 100%. Under the assumption that XMR will eventually go up in the mid-long term the only risk left is that my collateral currency (in that case XBT) crashes . How do you think about that strategy?
How does shorting, margin trading & co actually works on kraken?
I couldn't find any satisfying information in the FAQ or trading guide about how i.e. short selling actually works and what fees apply. Am I lending real coins? from whom? Or is kraken itself the counterparty of my trade? What fees do apply and how costly is it, to keep positions open for extended periods of time? If anyone could point me to where I could find these information, please do! ;) edit: seems like most things actually are addressed in the subcategories of the trading guide and the fee schedule many issues remain though (like the fact that the whole account is used as margin at all times and that closing positions is a real pita)
Margin trading on Kraken can be beneficial and could enable the user to amplify their gains if the right trades are executed. The platform does offer quite a few benefits, but there are also some negatives that have to be factored in. Margin Trading & Futures. Kraken has 2 new sections on their platform elevating the exchange to a serious trading platform, also for professional traders. One new section is the Kraken Pro subdomain, which you access from your dashboard. This is the margin trading area designed for professional traders with an advanced trading interface in the Kraken is one of the first US-based exchanges. It was launched in September 2013, and its margin trading option was delivered in late December 2018. Margin trading allows users to leverage their positions backed by funds that users don’t really possess. The benefit of this type of trading approach is that it can substantially increase profits and risk a smaller amount of funds. Margin Trading is the borrowing of funds to buy assets. In this case we’re borrowing from Kraken and the funds come from their own operating account. Leverage allows a trader to open a position that is larger than the balance of their account. Margin trading basics Sign up for a Kraken account and start trading Bitcoin, Ethereum and more today ; Sign Up. Take your crypto to the next level with Kraken. Sign Up Sign In. Take your crypto to the next level with Kraken. Sign Up Sign In. Features. 24/7 Support;
A quick tutorial on how to use Kraken's trading interface to trade with leverage. Kraken is a top 3 centralized cryptocurrency exchange located in the United States with 10 Trust Score. # World Wide Pump Community Start Welcome to Telegram channel, specially devoted to pumps on cryptocurrency market and the whole nine yards. https://t.me/wwpco We will organize pumps (and dumps ...