How to open leverage in Kraken mobile version

Margin trading on Kraken's mobile app allows traders to borrow funds to amplify both potential profits and losses, but it's crucial to understand the risks and manage exposure effectively.

Nov 09, 2024 at 09:13 am

How to Open Leverage in Kraken Mobile Version

Leveraged trading amplifies both potential profits and losses by allowing traders to borrow funds from the exchange to increase their trading positions. The borrowed funds, known as margin, act as additional capital, enabling traders to trade with a larger sum than their initial deposit. While leverage can enhance returns, it also magnifies risks, so it's crucial to understand the implications before engaging in margin trading.

Step 1: Enable Margin Trading

• Open the Kraken mobile application and log into your account.
• Tap the "More" tab located at the bottom right corner of the screen.
• Select "Funding" from the menu options.
• Click on "Enable Margin Trading" and follow the on-screen prompts.

This process involves agreeing to Kraken's margin trading terms and confirming your understanding of the risks involved. Once enabled, you can access the leverage options when placing trades.

Step 2: Select Your Trading Pair

• Navigate to the "Trade" tab and choose the trading pair you want to trade with leverage.
• The available cryptocurrencies for margin trading will be displayed on the left side of the screen.

Step 3: Configure Leverage

• Once you have selected the trading pair, tap on the "Margin" toggle switch located at the top of the trading interface.
• A leverage slider will appear, allowing you to adjust the leverage amount.
• The maximum leverage available for each trading pair varies depending on market conditions and the exchange's risk management policies.

Step 4: Enter Order Details

• After configuring the leverage, enter the order size, price, and type as usual.
• The order summary will display the total position value, including the borrowed funds from the exchange.

Step 5: Place the Order

• Review the order details carefully and ensure you are satisfied with the leverage amount and other order parameters.
• Tap the "Buy" or "Sell" button to place the margin order.

Step 6: Monitor Your Position

• Once the order is executed, you can monitor your margin position under the "Positions" tab.
• This tab provides real-time updates on your position, including the current value, profit/loss, and margin utilization.

Step 7: Manage Your Risk

• Margin trading carries inherent risks, and it's essential to manage your risk exposure effectively.
• Set stop-loss orders to limit potential losses in case of adverse market movements.
• Monitor your margin utilization and ensure you do not exceed the designated limits.
• Consider holding a margin buffer in your account to cover potential market fluctuations.

Step 8: Close Your Position

• To close a margin position, simply place an opposite order of the original position.
• For example, if you had opened a long position, you would close it by placing a short position of the same size.

Additional Considerations

• Margin trading is not suitable for all traders, particularly those new to the cryptocurrency market.
• It's recommended to gain experience with spot trading before venturing into leveraged trading.
• Margin trading fees apply, so ensure you factor them into your trading strategy.
• The cryptocurrency market can be highly volatile, so be prepared for substantial price fluctuations.
• Always trade with a clear exit strategy and risk management plan in place.