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SAN FRANCISCO–(BUSINESS WIRE)–Kraken, a San Francisco-based Bitcoin exchange, is pleased to announce
the launch of margin trading. Margin is an exciting instrument that
allows clients to amplify their trading profits and gain in both up and
Kraken is now one of the few exchanges allowing clients to trade
bitcoins on margin. Within the next few weeks, Kraken will be
offering up to 20x leverage.
Margin trading is available to clients who have verified their accounts
to Tier 3 or Tier 4.
to learn more about how to become verified to Tier 3 or Tier 4.
Currently margin trading is only available for the bitcoin-euro currency
pair (XBT/EUR). However, clients can margin trade the XBT/EUR pair using
their USD balance.
At launch, Kraken is initially offering up to 3x leverage, meaning that
a margined position can gain 3x more than the underlying move in bitcoin
price. A 4% gain in bitcoin price means a 12% gain in a 3x long
position. Traders can similarly leverage their gains when the market
drops. A 4% drop in bitcoin price means a 12% gain in a 3x short
Opening a margin position is as simple as toggling a button in the order
form to select the level of leverage and all the other order details
work the same way they do for normal trades, including the many advanced
order types Kraken supports. Open positions are easily closed with an
opposing leveraged order. If you go long 3 bitcoins with a leveraged buy
order, you can close the position by selling 3 bitcoins in a leveraged
Initially there is no extra fee for margin trading. You simply pay your
normal trade fee on the opening and closing volume of the margin
position. So if you would normally pay 0.10% for a trade, you will pay
0.10% to open a margin position and 0.10% to close that position.
Positions open for more than 24 hours will also be charged a 0.05%
renewal fee to keep the position open for the next 24 hours. Traders who
wish to avoid this fee should close their position within 24 hours.
For more information on the benefits and risks of margin trading, please
see Kraken’s Trading
Guide and FAQ.
Founded in 2011, San Francisco-based Kraken (www.kraken.com)
is the largest Bitcoin exchange in euro volume and liquidity and also
trading US dollars, British pounds and Japanese yen. Kraken is
consistently rated the best and most secure Bitcoin exchange by
independent news media. Kraken was the first Bitcoin exchange listed on
Bloomberg terminals, the first to pass a cryptographically verifiable
proof-of-reserves audit, and is a partner in the first cryptocurrency
bank. Kraken is trusted by hundreds of thousands of traders, the Tokyo
government’s court-appointed trustee, and Germany’s BaFin regulated