Kraken Launches Margin Trading

San Francisco-based crypto exchange Kraken is now offering margin trading, allowing users to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term their positions by 3:1 relative to assets.

Kraken is the largest marketplace for euro-based crypto trading, and typically ranks in or near the top ten globally in total bitcoin trading volume. The exchange was recently selected by MtGox bankruptcy trustee Nobuaki Kobayashi to assist with the distribution of remaining assets to creditors.

Kraken is requiring creditors proceeding through its process to open an account, hoping that they can further increase traffic on its exchange.

The ratio of 3:1 is fairly standard in the industry, for those offering margin on physical crypto trading (as opposed to synthetic products, for which higher leverage is available). The leverage will come in handy during a period of ultra-low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term in bitcoin prices, similar to last May, which may be turning off traders once captivated by frequent roller coaster rides.

Leverage will only be available for verified Tier 3 or Tier 4 clients, which have higher funding limits and are required to supply government issued ID.

Kraken will charge a 0.05% fee (2% annualized) for each 24 hours a leveraged position remains open.

Initially, only the BTC/EUR pair will be available for leveraged trading, although USD balances count towards the allowable trade size.