Futures

Bitcoin Futures Trading

Next Level Trading with Cryptocurrency Futures

Bitcoin and digital assets can be volatile investments. Many traders attempt to manage their risk simply by buying an asset when the price drops or selling it when the price goes up. The downside of this tactic is that oftentimes money is left on the table after you leave the market. If the price continues to rise after you sell, for example, you’re missing out on profits you could’ve earned had you left your position open.  A key benefit of futures trading is that you can hedge existing spot positions without additional crypto - allowing you to be agile and prepared for any market environment.

Cryptocurrency futures allow you to maximize your returns by utilizing the power of leverage to multiply your profits and apply advanced trading strategies. Use futures to speculate on the direction of the market and minimize risk, all without the need to hold additional crypto.

What is futures trading?

Futures, or futures contracts, are an agreement to buy or sell an asset at a later date for a fixed price. They are typically used by traders as a way to hedge other investments or to lock in profits when trading in volatile markets. The prices for Kraken's futures are based on aggregated indices that represent the demand for each cryptocurrency from a variety of exchanges, so you always know you're getting a fair price. There are a number of benefits to this type of trading:

Hedge Price Risk

Investors who are holding digital assets can mitigate the risk of a falling price by simultaneously taking a “short” future position on the asset in question. If the price falls, the “short” position will mitigate losses by providing additional revenue.

Speculate on Market Direction

Cryptocurrency futures trading brings with it the opportunity for real speculation to occur - traders can make their opinions felt in the market with futures positions. Think the price of Bitcoin is going to the moon? Get extra long on futures and multiply your returns. Think LTC is going to die? Put your money where your mouth is and get short on Litecoin Futures!

Stabilize Price Fluctuations

With speculation comes stability as long term views of the markets play a more significant role. Whether you are a miner with expected Bitcoin flows or a Bitcoin ATM operator with inventory to manage: futures help crypto merchants smoothen their exposure while being able to focus on their core business.

Trade Crypto without Holding

One of the most crucial aspects of some cryptocurrency futures contracts is that it is not necessary to hold cryptocurrency to gain price exposure. This opens access to crypto markets to a bevy of traders and institutions who are prohibited due to regulators, fund mandates or other operational limitations.

Futures Contract Details

We offer Ethereum, Litecoin, Bitcoin Cash, Ripple and Bitcoin futures on Kraken. See the chart below for details on each currency pair. 

Currency pairsBTCUSDETHUSDLTCUSDBCHUSDXRPUSDXRPBTC
LeverageUp to 50xUp to 50xUp to 50xUp to 50xUp to 25xUp to 25x
TimeframePerpetual, Monthly, QuarterlyPerpetual, Monthly, QuarterlyPerpetual, Monthly, QuarterlyPerpetual, Monthly, QuarterlyPerpetual, Monthly, QuarterlyPerpetual, Quarterly
Contract size1 USD1 USD1 USD1 USD1 USD1 XRP
CollateralBTCETHLTCBCHXRPBTC
TypeInverseInverseInverseInverseInverseVanilla
Fees

Perpetual: 0.075 / -0.03

Fixed: 0.05 / -0.03

Settlement

Profit from trading is instantly settled and available.

Contracts mature at expiration date and the open interest is cash-settled in the collateral asset.

Leverage up to 50x on futures orders

Futures are extremely capital efficient, meaning that less money is required to open positions than if you were spot trading (1x) or margin trading (3-5x). This means if you have 10 Bitcoin and are scared of price decline, you have to trust 100% of your money to spot exchange to sell, or 20% of your money on margin exchange. With 50x futures, you trust as low as 2% of your money on exchange.

Using collateral as low as 2% of the notional amount, crypto futures allow you to take positions with up to 50x leverage -- giving you flexibility to position yourself in the market while maintaining low exchange risk.

To see if you qualify to trade Bitcoin and other crypto futures on Kraken, visit our blog post for details.

Risk Disclaimer

Kraken Futures is a trading name of Crypto Facilities, authorized and regulated by the Financial Conduct Authority in the United Kingdom (FRN 757895). You should consider whether you understand how futures function. This information is not directed at residents of the United States or to be distributed to or used by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.