TL;DR
- US retail traders can now access spot margin trading on Kraken Pro; This is spot margin trading regulated in the United States.
- Point margin means borrow against your crypto holdings without selling them.
- Your Spot margin fees are displayed before you confirm. Your liquidation price and available margin are visible as soon as your position is opened.
- Start small. Mechanics reward discipline, not size.
The margin gap that American retail traders have lived with
You kept your BTC despite a 30% drop. You haven’t sold. But last month you needed capital.
A professional trader in this situation would not have sold either. They would have borrowed against what they held, remained in their position and repaid when the transaction closed. Their assets would have remained intact throughout this time.
Until now, this option did not exist for US retail traders. This gap has pushed activity overseas, to unregulated locations, without any of the protections offered by a regulated market.
This is changing now.
Your spot margin trading platform of choice
Kraken Pro spot margin trading is offered through a CFTC-registered entity. Now available to all eligible US Kraken Pro traders. Leverage up to 10x, long or short.
This is not a small update. For years, access to margin trading on a regulated platform in the United States has been limited to eligible contract participants: institutions and high-net-worth individuals meeting a portfolio threshold of $10 million. If you were a retail trader and wanted margin, you had the choice of going without it or exporting it.
US retail traders can access spot margin on a US platform. Not abroad. Not through an institution. Here, with full pre-trade visibility of every cost and risk.
The offshore option carried real risk. Unregulated venues offer no consumer protections, no transparency requirements, and no recourse if something goes wrong.
Kraken Pro has changed the equation. Retail traders in the United States now have access to regulated spot margin on Kraken Pro, with all costs visible before committing, and with the same infrastructure that institutional traders rely on.
What is the strategy
Spot margin trading on Kraken Pro means trading with leverage using the crypto you already hold as collateral. Leverage up to 10x. Go long or short, without selling your holdings.
Instead of selling your BTC to access capital, you use it as collateral and borrow against it. You trade with borrowed funds. When you close the transaction, you pay back what you borrowed. Your BTC stays in your account all the time.
This is how professional traders maintain exposure to assets they believe in while accessing liquidity. The position continues to operate without being sold.
How it works
Set your amount
Decide how much to borrow and which position to open. Start small. Not because it’s safer in any vague sense. Because testing the mechanics on a small scale is how disciplined traders work.
Check the numbers
On your open order, you will see:
- Estimated liquidation price: the level at which your position automatically closes to repay what you borrowed
- Estimated borrowing cost per day: how much it costs to maintain this position, charged every 4 hours, locked at the rate indicated when you entered
What is at risk
If the market reaches your liquidation price, the position automatically closes and the borrowed amount is repaid from your collateral.
Set a stop-loss order above your liquidation price before walking away from an open position. It automatically closes your position before liquidation is reached. Professional traders always use one.
Who is it for
Three types of American traders find this very useful:
The long-term holder who needs liquidity
You have held your position through several cycles. You don’t want to sell. You need capital for something else. As a US retail trader on Kraken Pro, margin allows you to access this capital without touching the position you have built.
The active trader who wants more flexibility
You exchange regularly. You want to increase your position size or trade back and forth without selling your existing holdings. Spot Margin gives you this capability with full cost visibility before entry.
The disciplined beginner
You were aware of the cash margin, but stayed away because you couldn’t clearly see the downsides before committing. The three numbers on the order form represent exactly this visibility. Start with a small position. Learn mechanics. Evolve when you’re ready. Unlock your business potential.
Spot margin trading involves significant risks and is not suitable for everyone. You may lose all or more than the initial investment, exceeding the value of the collateral posted with the company to open and maintain the position. You may be required to post additional collateral at short notice or without notice, and you may remain liable for any shortfall after liquidation and enforcement of the collateral. Trading should only be undertaken with risk capital – funds that can be lost without compromising financial security or lifestyle – and only by those who can afford such losses. While leverage can increase potential returns, it also significantly increases risk. Leverage available may vary by asset. Past performance is not necessarily indicative of future results. The availability of spot margin trading through Kraken Derivatives US is subject to certain limitations and eligibility criteria. View Risk Disclosure Statement.
Spot margin trading is operated by NinjaTrader Clearing, LLC d/b/a Kraken Derivatives US, a CFTC-registered futures commission merchant and NFA member (NFA ID: 0309379), with financing provided by Payward Accredited LLC. View Disclosures.
