We are delighted to launch something new on the Kraken application – and if you have always wanted to take a stand on what will happen following In the cryptographic markets, it could be for you.
Today we are launching Kraken Perps (abbreviation of perpetuated kraken), Available in certain regions for eligible customers worldwide. These offer a simple and flexible way to exchange where you think that the prices are directed – without having to have the underlying asset – directly from the Kraken application.
While trading perpetual future was already available via Kraken Pro, the launch of Kraken Perps marks a step forward to make this experience more accessible and intuitive for everyday investors.
What are perpetual contracts (PERPS)?
Have you ever bet with a friend at the start of a sports season on whom will win the championship? This is similar to what a perpetual contract works – you will take a call for strong conviction on a future result on the cryptography market.
For example:
- “I think Bitcoin will increase in the coming months.”
- “The price of Ethereum could decrease after its next upgrade.”
- “Samecoins is back, so I think solana’s price is about to take off.”
With Kraken PerpidYou can act on these predictions. Perps is trading instruments designed to allow you to speculate on future price movements – above or down – without having the active asset. Unlike a bet with your friend, there is no expiration or locking period, so you can hold your position as long as you wish. You also have the freedom to adjust the size of the position if you have more conviction over time or to withdraw at any time.
Everything you need is to finance the trade with assets of your Kraken balance (called collateral) to open a position. The USD will be taken care of when launching, with more assets to follow soon.
Then choose “increase” or “decrease” depending on how you think the price of the asset will go and decide the size of the position. That’s it.
An example of the real world
Say that you believe that Bitcoin is undervalued, instead of buying BTC on the Kraken spot market, you could go for a long time On a perpetual contract and profit of the BTC, if you are right to predict that the price will increase.
Or maybe you think that a special token is over-type and is ready for a drop in prices. In this case, you could go short – and benefits if BTC lowers the price.
Of course, things change over time. If you feel more confident in your point of view, you can try to increase the size of your position; If you feel less confident, you can withdraw money from the table.
Kraken Perps takes place more than trade – they give you new ways to express your opinions, manage risks and create a strategy in your wallet.
Why the Perps count
Perpetuates have long been popular with advanced merchants, but they have often felt out of reach for everyday investors.
Kraken Perps changes that. Designed to be intuitive and accessible, with clean interfaces, simple language and useful features. Kraken Perps allows you to negotiate with less complexity and more confidence.
Security passes first
We built Kraken Perps with safety, transparency and education at the heart. Like all trading, Perps has risks – and they are not designed for everyone. But, with the right tools and information, they can be a powerful part of your investment toolbox.
To help manage the risks, Kraken Perps includes integrated protections, such as customizable stop-loss orders, which automatically limit your drawback if the market moves in the opposite way to the way you predicted it.
In addition, we deploy a series of educational resources to help you understand how the Perps work and how to use them in a responsible manner.
Exchange the future with Kraken Perps
Kraken Perps is now live for eligible customers – and we are just starting. We will continue to expand access, refine the experience and deliver the right tools you need to effectively exchange the markets.
Perps do not consist in becoming a day trader. It is a question of having more ways and the right tools to express your point of view on the market, manage the risks or add an additional layer of strategy to your wallet.
Commercial derivatives and other financial instruments, including leverage financial instruments, include significant risks and are not suitable for all investors. See our Disclosure of risks To find out more.
