Kraken crypto futures
What is Kraken?
Most likely, everyone has heard of the Kraken, a mythical sea monster that was compared to the size of a floating island and that could pull the largest ship to the bottom by grabbing it with its powerful tentacles. Now there is another Kraken, but already cryptocurrency. And apparently the creators, of this exchange, they strived to ensure that their platform became the same “beast”, the same strong, powerful and influential trading platform, where customers can earn money, and competitors will be scared away by their impressive power.
Kraken derivatives trading platform has managed to win the trust of users. No successful hacker attacks on the exchange were recorded. The company 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 among users. The peculiarity of the exchange is that it has a good reputation among traders and is actively developing. Since the company focuses on the international market, the project website has been translated into several languages.
The exchange compares favorably with a number of advantages: working conditions, competent and attentive support service, low market commissions, the possibility of margin trading (which will increase income using trading leverage), fast transaction speed.
What are derivatives?
Derivatives appeared several centuries ago. They were used by manufacturers and buyers of various goods. For example, rice in Japan, tulip bulbs in Holland. The main function of these futures transactions is risk hedging. It is still being fulfilled today, but to a lesser extent than the second - speculation.
Hedging is insurance against losses. Let's say a factory needs regular supplies of raw materials to ensure uninterrupted production. But prices can change, so it would be wise to insure against this by entering into a fixed-term contract at current rates. If you draw up not one, but several agreements for different periods, then the plant provides itself with raw materials in the future and secures itself from changes in prices for it.
Popular are speculative transactions that have nothing to do with the actual supply of goods or securities under the contract. The main function of derivatives in speculation is the ability to profit from price changes. You can do this both on its increase and decrease. The essence of transactions is that one party assumes that the value of the asset will increase, while the other party bets on a decrease. As a result, someone ends up winning.
A derivative allows you to fix the value of an asset for a certain period of time. Therefore, it is used to protect against sudden changes in the prices of raw materials or products.
Advantages of derivatives:
- Low entry threshold, since at the time of the conclusion of the contract, you only need to pay a guarantee fee.
- The opportunity to earn not only on the rise in prices, but also on its fall.
- Possibility of obtaining higher profitability with minimal investment and in a short time.
- They give more room for speculative politics.
- They provide an opportunity to earn on the sale and purchase at a low cost of a derivative asset.
Derivatives are an interesting and popular investment tool that allows you to get a decent profit in a relatively short period of time.
However, the rule is fully applicable to derivatives: higher profitability - more risks.
Kraken cryptocurrency derivatives are available for purchase now.
How does cryptocurrency derivatives trading work?
Buy Kraken derivatives in India today and start earning in the digital world now! Cryptocurrency trading (also known as digital assets) is the buying, selling or holding of cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and others, for the purpose of profiting from short-term, medium-term or long-term fluctuations in their prices. Trading on the Kraken platform can be done by exchanging cash such as USD, EUR and CAD for cryptocurrency or exchanging one cryptocurrency for another.
Cryptocurrency is a digital asset designed to facilitate peer-to-peer financial transactions and smart contracts on the Internet in a decentralized manner.
Fiat currency has no intrinsic value and is established by the government as legal tender. Examples include the United States dollar (USD) and the euro (EUR).
Kraken derivatives trading does not have any hidden fees.
How to open a demo account?
Kraken cryptocurrency derivatives trading can be the first experience for someone, because there is a demo account on the platform and to create a test account you need to do the following:
- Go to the official website.
- Click "Register" in the upper right corner. The username and password will be generated automatically.
- Save your username/password in a password manager if you want to track progress.
- Click Finish Registration.
The funds will be available in the futures wallet. They will need to be transferred to the trading wallet for each type of contract.
- On the left side toolbar, click "Wallets".
- Click "Transfer" in the currency of choice most will be of interest.
- Enter the amount and trading pair.
- Click Send Transfer.
Then return to the "Trade" page and use the "Order Form" panel to start trading.
Minimum deposit amount
The minimum order size depends on the base currency.
The base currency is the left currency in each pair. For example, BTC is the base currency in the BTC/USD pair.
Each traded currency on Kraken has its own minimum order size. An order placed with a volume below the minimum order size will be rejected.
How to withdraw money?
Step-by-step instructions for withdrawing funds through the Kraken site are listed below:
- Log in to your Kraken account and go to the Transfers tab.
- Use the search bar and enter the desired currency, or check "Show all assets". Then, select the option "Withdraw funds".
- Select your preferred from translation provider from the drop-down menu. If only one option is shown, you can skip this step and continue with the next item.
- Add a new bank account and for this you need to do the following (Click on “Add account”; Enter bank account details (all fields are required) and click “Save bank account”).
- Request a withdrawal.
- To make sure that the withdrawal will go through without any incidents: Make sure that you do not withdraw funds to third-party payment processors; Use only the bank account that is under control, the name of which matches the verified name / person on the Kraken account; Make sure that this bank or the financial institution meets the requirements of the transfer provider you have chosen.
List of Kraken derivatives
Trading futures can be beneficial for a number of reasons compared to trading the underlying asset directly:
- Futures allow you to benefit from higher prices as well as lower prices.
- Futures provide financial leverage.
- They can be used to hedge price risk.
- Futures are associated with low transaction fees.
Reverse futures means that the payout structure for a given position is non-linear. Profit and loss is calculated so that the profit on the collateral used corresponds to the value of the contract when the price is adjusted.
Kraken crypto futures trading can also become an additional income, because the process itself does not take much time.
For example, in a Bitcoin-Dollar contract, since you are using Bitcoin as collateral and the contract is denominated in USD, when the price falls, the Bitcoin payout must be higher to match the USD value. This means that if the price of Bitcoin-Dollar increases by 10%, then the payout is 9.09%, and if it decreases by 10%, then the payout in BTC is 11.1%.
In derivatives markets, price differentials are determined by technical factors such as interest rate differentials, dividends, or holding costs. In the case of Bitcoin and other digital assets, the difference in price is mainly due to an imbalance in supply and demand. For example, in the past, Bitcoin futures traded at a premium to the spot price. This indicates strong demand from buyers using borrowed funds.
Perpetual futures are a special type of futures contract with no expiration date that auto-rolls every four hours.
No fees are charged on auto-rolling or funding payments - these are strictly between counterparties. Perpetual futures can be used to hold long-term positions open without having to roll over the position, and these contracts tend to have the most liquidity. These contracts have a funding rate associated with them, which can be positive or negative. Contracts with fixed maturities (monthly, quarterly and half a year) may be more suitable for the user's needs for hedging purposes.
The exchange has a margin system set up in such a way that, with a high degree of confidence, each market participant has sufficient margin to cover potential losses from sudden price fluctuations. This coverage is achieved through independent margin accounts for each type of instrument. The total portfolio value of each margin account is constantly recalculated and compared to the margin requirements arising from open positions and open orders in that margin account. The Instant Margin System (IMS) uses two different margin parameters to manage the credit risk of margin accounts. Each parameter is associated with a specific margin requirement for an open long or short position and triggers specific actions when it is reached:
- Initial margin (IM) is required to open new positions. If the value of a margin account falls below IM, all open orders that further increase the risk of that margin account are canceled immediately. Before opening any new positions, additional funds must be deposited into the margin account in order to return the amount above IM. Alternatively, some existing positions can be closed.
- Maintenance margin (MM) is the margin required to maintain open positions. If the value of the margin account falls below MM, the liquidation process begins.
Kraken crypto futures in India have a lot of positive reviews.
What futures contracts does Kraken support?
Futures contracts can be with monthly, quarterly and semi-annual expiration, as well as perpetual.
Now the trust rating for this exchange is 10/10. Clients who have already worked with kraken speak of it as a high-quality and reliable online platform, where the best conditions for increasing trading volumes and making a profit are created. A high level of liquidity for trading pairs forms the most favorable rate and the maximum set of functions for conducting transactions protects the trader from potential losses.Other positive aspects of working with the Kraken cryptocurrency derivatives trading platform include: an impeccable reputation, a convenient multilingual interface, a good set of digital assets, a dynamic low commission, margin trading with a large leverage, as well as the ability to earn on futures.