Cryptocurrency exchange Kraken has launched a new
derivatives product, introducing simplified perpetual contracts it calls
“Kraken Perps.”
The contracts, now available in select regions to
eligible clients worldwide, allow users to speculate on crypto price movements
without owning the underlying asset.
A Betting Analogy for Complex Instruments
“Perps are trading instruments designed to let users speculate on future price movements, up or down, without owning the asset
involved,” the exchange explained.
“Unlike a bet with your friend, there’s no expiry date
or lock-in period, so you can hold your position as long as you want,” they added. “You also
have the freedom to adjust the size of the position if you have more conviction
over time, or cash out anytime.”
The mechanics remain rooted in derivatives trading. To
open a position, users fund trades with collateral from their Kraken balance.
At launch, USD serves as the supported collateral, with other assets expected
to follow. Traders then choose whether to increase or decrease exposure to a
chosen cryptocurrency’s price.
Related: Kraken Expands Forex Trading With Perpetual Contracts for Major Pairs
A bullish view on Bitcoin , for example, could be
expressed through a long perpetual contract, while a bearish outlook could be
taken by shorting. Unlike traditional futures, there is no expiry date, giving
traders flexibility to manage positions based on changing conviction.
Balancing Simplicity and Risk
The exchange said it will roll out educational
resources to help users understand the mechanics and risks involved. Still, the
choice of sports betting analogies has prompted debate about whether retail
clients will fully grasp the leverage and volatility embedded in such
instruments.
Kraken Perps are reportedly live in select regions for
eligible clients, with plans to expand access. The company framed the product
not as a call to day-trade, but as another tool for expressing market views and
building portfolio strategies.
Cryptocurrency exchange Kraken expanded into forex trading
in April by launching perpetual contracts for major currency pairs, including
EUR/USD and GBP/USD. The new offering allows users to trade these FX pairs
24/7, marking the first time Kraken has provided continuous access to
traditional fiat markets alongside its crypto offerings.
Following the Introduction of FX Perpetual Contracts
The contracts, now available on Kraken Pro, operate without
expiry, distinguishing them from standard FX products that follow set trading
hours or maturities. According to Kraken, the mechanics of the FX perps are
modeled on its existing crypto perpetual contracts, aiming to provide a
familiar trading experience for its user base.
Kraken reported that its platform handled $5.4 billion in FX
spot trading volume in 2024, with EUR/USD and GBP/USD accounting for $3.5
billion of that total. The move into perpetual FX contracts is positioned as a
way to deepen access to these highly traded pairs while leveraging Kraken’s
established infrastructure for crypto derivatives.
Read more: Kraken’s Breakout Bet Could Normalize Prop Trading Across the Crypto Industry
Cryptocurrency exchange Kraken has launched a new
derivatives product, introducing simplified perpetual contracts it calls
“Kraken Perps.”
The contracts, now available in select regions to
eligible clients worldwide, allow users to speculate on crypto price movements
without owning the underlying asset.
A Betting Analogy for Complex Instruments
“Perps are trading instruments designed to let users speculate on future price movements, up or down, without owning the asset
involved,” the exchange explained.
“Unlike a bet with your friend, there’s no expiry date
or lock-in period, so you can hold your position as long as you want,” they added. “You also
have the freedom to adjust the size of the position if you have more conviction
over time, or cash out anytime.”
The mechanics remain rooted in derivatives trading. To
open a position, users fund trades with collateral from their Kraken balance.
At launch, USD serves as the supported collateral, with other assets expected
to follow. Traders then choose whether to increase or decrease exposure to a
chosen cryptocurrency’s price.
Related: Kraken Expands Forex Trading With Perpetual Contracts for Major Pairs
A bullish view on Bitcoin , for example, could be
expressed through a long perpetual contract, while a bearish outlook could be
taken by shorting. Unlike traditional futures, there is no expiry date, giving
traders flexibility to manage positions based on changing conviction.
Balancing Simplicity and Risk
The exchange said it will roll out educational
resources to help users understand the mechanics and risks involved. Still, the
choice of sports betting analogies has prompted debate about whether retail
clients will fully grasp the leverage and volatility embedded in such
instruments.
Kraken Perps are reportedly live in select regions for
eligible clients, with plans to expand access. The company framed the product
not as a call to day-trade, but as another tool for expressing market views and
building portfolio strategies.
Cryptocurrency exchange Kraken expanded into forex trading
in April by launching perpetual contracts for major currency pairs, including
EUR/USD and GBP/USD. The new offering allows users to trade these FX pairs
24/7, marking the first time Kraken has provided continuous access to
traditional fiat markets alongside its crypto offerings.
Following the Introduction of FX Perpetual Contracts
The contracts, now available on Kraken Pro, operate without
expiry, distinguishing them from standard FX products that follow set trading
hours or maturities. According to Kraken, the mechanics of the FX perps are
modeled on its existing crypto perpetual contracts, aiming to provide a
familiar trading experience for its user base.
Kraken reported that its platform handled $5.4 billion in FX
spot trading volume in 2024, with EUR/USD and GBP/USD accounting for $3.5
billion of that total. The move into perpetual FX contracts is positioned as a
way to deepen access to these highly traded pairs while leveraging Kraken’s
established infrastructure for crypto derivatives.
Read more: Kraken’s Breakout Bet Could Normalize Prop Trading Across the Crypto Industry
