Spot margin trading lets you buy and sell crypto on Kraken using funds that could exceed the balance of your account. Unlike futures and derivatives trading, spot margin trading involves buying or selling the actual underlying assets, rather than financial contracts.
For example:
Suppose you fund your account with $5,000 USD. Using an extension of margin from Kraken, you could buy or sell $10,000 USD worth of BTC/USD on the BTC/USD order book with this account.
Kraken offers predictable fees for margin trades. Depending on the margin pair you’re trading, you are charged between 0.01% to 0.05% to open a position. Rollover fees of the same amount occur every 4 hours the position remains open. Margin rates fluctuate based on market conditions, but your rollover rate will be locked in at the time of order execution. This rate will be displayed on the order form as you fill out your order.
Before using margin to trade crypto, please take time to fully understand the unique risks involved. There are a lot of concepts to learn, but this is your money at stake, so it's worth your time to walk through everything carefully.
