How to open a contract account in Kraken

Opening a contract account on Kraken empowers traders with the ability to speculate on cryptocurrency price movements using leverage up to 50x, but caution is advised due to the potential for magnified losses associated with leverage.

Nov 17, 2024 at 01:36 pm

How to Open a Contract Account in Kraken

Kraken is one of the world's leading cryptocurrency exchanges, offering a wide range of services to its users. One of these services is contract trading, which allows users to speculate on the future price of cryptocurrencies. In order to open a contract account in Kraken, you will need to follow the steps outlined below.

1. Sign up for a Kraken account

The first step is to sign up for a Kraken account. This can be done by visiting the Kraken website and clicking on the "Sign Up" button. You will need to provide your email address, create a username and password, and agree to the Kraken terms of service.

2. Verify your identity

Once you have signed up for an account, you will need to verify your identity. This is required by law in order to prevent fraud and money laundering. To verify your identity, you will need to provide Kraken with a government-issued ID and proof of address.

3. Fund your account

Once your identity has been verified, you will need to fund your account. This can be done by depositing cryptocurrency or fiat currency into your Kraken account. Kraken supports a wide range of deposit methods, including bank wire transfer, credit card, and debit card.

4. Open a contract account

Once your account has been funded, you can open a contract account. To do this, click on the "Trading" tab and then select "Contracts" from the drop-down menu. On the contracts page, click on the "Open Contract Account" button.

5. Choose your leverage

When you open a contract account, you will need to choose your leverage. Leverage is a multiplier that allows you to trade with more capital than you have in your account. However, it is important to note that leverage can also magnify your losses. Kraken offers leverage of up to 50x for cryptocurrency contracts.

6. Place your order

Once you have chosen your leverage, you can place your order. To do this, select the cryptocurrency that you want to trade and enter the amount of the contract that you want to buy or sell. You can also set a stop-loss order or a take-profit order to protect your profits or limit your losses.

7. Monitor your position

Once you have placed your order, you will need to monitor your position. You can do this by clicking on the "Orders" tab and then selecting "Contracts" from the drop-down menu. On the contracts page, you will see a list of your open orders and their current status.

8. Close your position

When you are ready to close your position, you can do so by clicking on the "Close" button next to the order that you want to close. You can also close all of your open orders at once by clicking on the "Close All" button.