Kraken launches CFTC-regulated perpetual futures for US traders. Read the full analysis.
Frequently Asked Questions
Here is a list of FAQs about Krakens new CFTCregulated perpetual futures for US traders covering beginner to advanced topics
BeginnerLevel Questions
1 What exactly is a perpetual future
Its a type of trading contract that lets you bet on the price of a cryptocurrency going up or down without actually owning the coin Unlike regular futures it doesnt have an expiration date so you can hold the position as long as you want
2 How is this different from regular crypto trading on Kraken
With regular trading you buy and own the actual crypto With perpetual futures youre trading a contract based on the price This allows you to use leverage to amplify your potential gainsor losses
3 What does CFTCregulated mean for me
It means the product is overseen by the US Commodity Futures Trading Commission This adds a layer of consumer protection transparency and legal clarity Kraken must follow strict rules about how they handle your money and trades
4 Do I need to be an accredited investor to trade these
No Unlike some crypto derivatives these are available to retail traders who meet Krakens standard eligibility requirements like passing a knowledge assessment
5 Can I trade these on my phone
Yes Krakens app supports perpetual futures trading though youll need to enable futures trading in your account settings first
IntermediateLevel Questions
6 What cryptocurrencies can I trade as perpetual futures
Kraken has announced support for major coins like Bitcoin and Ethereum initially with plans to add more assets over time
7 How does leverage work with these contracts
You can choose a leverage multiple If you use 10x leverage a 1 move in the crypto price results in a 10 change in your positions value Higher leverage increases both potential profit and risk of liquidation
8 What is a funding rate and do I have to pay it
The funding rate is a small periodic payment between traders who are long and short It keeps the contract price close to