Kraken says eligible US clients will soon be able to trade crypto perpetual futures through Bitnomial, which are regulated by the CFTC.
Frequently Asked Questions
Here is a list of FAQs about Krakens launch of the first CFTCregulated crypto perpetual futures in the US
General Definition Questions
Q What exactly is Kraken launching
A Kraken is launching crypto perpetual futures trading for US customers These are the first such products to be regulated by the Commodity Futures Trading Commission
Q What is a perpetual futures contract
A Its a type of trading contract that lets you bet on the future price of a cryptocurrency without ever having to settle or expire Unlike traditional futures you can hold the position for as long as you want
Q How is this different from regular crypto futures I see on other exchanges
A The key difference is regulation Most other crypto perpetual futures are offered by offshore exchanges with little to no US oversight Krakens version is fully regulated by the CFTC which means stricter rules on transparency customer protection and market manipulation
Benefits Practical Concerns
Q Why would I want to use a CFTCregulated product instead of an unregulated one
A The main benefit is safety and trust Your funds are held by a regulated entity and the trading is monitored by a US government agency This reduces the risk of exchange hacks sudden rule changes or unfair trading practices
Q Can I use leverage with these contracts
A Yes perpetual futures are typically traded with leverage However because the product is CFTCregulated the maximum leverage allowed will likely be lower than what youd find on unregulated offshore exchanges
Q Do I need to be a professional or institutional trader to use this
A No Kraken is offering this to eligible retail customers in the US However you will likely need to pass a suitability assessment to prove you understand the risks of leveraged trading
Eligibility Access
Q Who can trade these perpetual futures
A Currently they are available to US residents who are customers of Kraken and pass the required verification and suitability checks It is not yet available to all US states
Q How do I start trading
A You need a verified Kraken account Once approved you will likely have to answer a questionnaire